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Analysis of the reasons for the rise in steel prices

Views: 0     Author: Site Editor     Publish Time: 2022-03-25      Origin: Site

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There are two main factors that affect the rise: first, demand is gradually recovering, and small and medium-sized traders have not stocked up during the Spring Festival, resulting in a centralized release of demand in the short term and centralized procurement to push prices higher; The regional air quality has reached the standard, and more stringent environmental protection inspections have been adopted, resulting in some steel companies restricting or even suspending production. The first influencing factor is what the author predicted before the festival. There are very few small and medium-sized traders in stock this winter, and the goods are basically concentrated in the hands of the first-level agents of large steel mills and small and medium-sized steel mills. Due to the difficulty in sales of small steel mills, this year The phenomenon of production reduction or even suspension of production in winter is relatively common, which makes the pressure on spot inventory in local markets after the holiday this year is not great. The intermediate traders and traders who deliver to the terminal have no goods in their hands. After the construction site and project start, they will start from the first-level agent. Purchasing by merchants and steel mills gradually drove up prices. After the prices showed signs of rising, an atmosphere of rushing goods was formed, which made the rate of price rise gradually accelerated. The impact of the second factor is slightly beyond the author's expectations, and I did not expect such a large impact. There are expectations in the market that the new environmental protection law will be implemented, but the State Council’s tough stance on pollution control at the Two Sessions exceeded market expectations, especially in late March as the International Olympic Bid Committee will come to Beijing and Zhangjiakou to inspect the 2022 Winter Olympics As for the preparations for the bid, the environmental protection department strictly inspected at this point, stationed in major areas such as Chengde, Zhangjiakou, Tangshan, etc., to check the sewage discharge situation of steel plants, which directly ignited the market sentiment and led to a continuous sharp rise in steel prices across the country, especially in North China.

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