Under the influence of factors such as the improvement of the domestic economy and the optimistic expectations of demand growth, the domestic steel prices have ushered in a general rise recently. Regardless of whether it is rebar used in construction, or sheet metal used in automobiles and home appliances, prices are showing an upward trend.
Demand spurs rising steel prices
Entering 2021, a number of major engineering projects across the country have started construction one after another, injecting momentum into the ”steel demand”. ”Demand for steel is still strong this year. This wave of rising prices in the steel market after the Spring Festival also confirms this trend.”In addition, from the cost side, the price increase of coke, iron ore and other raw materials has also played a supporting role in the price of steel; from the perspective of the international environment, global inflationary pressure will be greater in 2021, and the price of bulk commodities in the international market will generally continue to rise during the Spring Festival. After the holiday, the domestic market will connect with foreign countries, and the linkage effect is obvious.
Steel enterprises are running at full capacity
The Shanghai Securities News reporter noticed that domestic steel companies are also running at full capacity due to demand. According to statistics from the China Iron and Steel Association, in mid-February 2021, the average daily crude steel output of key steel enterprises was 2,282,400 tons, a record high; a month-on-month increase of 128,000 tons, an increase of 3.49%, and a year-on-year increase of 24.38%.
After the ”good start” in the Year of the Ox, is there room for steel prices to rise further?
As the expectation of economic recovery at home and abroad is getting stronger, the superimposed overseas demand is gradually recovering, and the profits of domestic industrial enterprises have bottomed out, providing support for the downstream demand of the steel industry. The company as a whole remains cautiously optimistic about the downstream demand of steel in 2021.
In terms of downstream industries, the industrial sector, manufacturing, construction machinery, automotive home appliances, and steel structure demand will continue to continue the boom in the fourth quarter of 2020. It is expected that it will maintain a good momentum for a period of time in the future to provide support for plates; downstream long products Real estate demand is expected to maintain a certain degree of resilience.
Post time: Jun-01-2021