Iron ore prices forced new high-Gobain Steel to increase steel prices in October in recent years

Baosteel, the leading domestic steel company, announced on October 13 the policy for ex-factory prices of mainstream products in October, including a general increase of RMB 60/t for hot-rolled steel and RMB 50 to RMB 100/t for cold-rolled steel. This is the second consecutive increase in steel prices since August this year.

In general, “Jin 9 Silver Ten” is the peak season for the consumption of steel products, and the major steel mills will see improvement in their orders in these two months. But so far, this year's "Golden September" feature has not performed clearly. The rapid cooling of investment in high-speed rail, the continued downturn in the real estate market and other factors are still pressing the steel market.

In addition, the central bank recently decided to include the financial institution's deposit in the scope of the deposit reserve, which intensified the tension in the market funds. As a capital-intensive industry, the high cost of ** has formed a certain degree of inhibition on the demand for steel terminal and the release of intermediate demand. The monitoring of the well-known domestic steel spot trading platform “Nishimoto Shinkansen” shows that since September, the domestic steel market price has been fluctuating around 4,800 yuan/ton. Most traders are in the doldrums, and high-bid merchants are basically unattractive.

In the case that the fundamentals of supply and demand are not optimistic, the important factor supporting the price increase of steel mills is the continuous rise in the prices of raw materials such as iron ore and coke. Iron ore, in particular, has risen for four weeks since mid-August, and the current market price has reached 187 to 189 US dollars/ton, which is only one step away from the high of 190 US dollars/ton that was created in April this year.

“The current low inventory and high cost have a supporting role to steel prices, but the tight funding and negative external macro environment will bring certain uncertainty to the steel price trend. It is expected that the overall steel price will be dominated by box vibration in the later period.” "Yi Ben Shinkansen," said analyst Qiu Yuecheng. There are also insiders pointed out that the final price of raw materials still depends on downstream demand. If the price of iron ore is changed, it is not ruled out that the steel price will start a new round of adjustment.