Affected by cost and inflation expectations, the second wave of price hikes in the domestic steel market is coming.
Following last month's first increase in the ex-factory price of various varieties in January 2011, Baosteel raised the steel price in February again. Except for the price of a small number of varieties, other major varieties were generally raised by RMB 100/ton. “The price increase did not exceed market and industry expectations.†Hu Yanping, a joint metal network researcher, told Chengdu Business Daily yesterday that production costs, market operations and major steel industry performance supported the price increase, which was influenced by Baosteel’s status. There will be many manufacturers to raise prices. However, a person in charge of Sichuan Hefeng Materials Trading Co., Ltd. believes that rising steel prices is a "currency phenomenon."
Baosteel's February price policy showed that in addition to the price of electroplated zinc in January, other major varieties were generally raised by RMB 100/ton. From January to February this year, the increase rate per ton is up to 400 yuan / ton. "This year's situation is somewhat abnormal." Sichuan local steel information dealer - Iron Cockernet researcher Wan Qing said that before the traders generally bearish on the steel market after New Year's Day, "there is less downstream demand, traders returning funds at the end of the year, the demand for goods is suppressed The current price, steel prices are hard to rise, but this year's trend is just the opposite." New Year's Day, Chengdu market rebar has risen by about 100 yuan / ton. According to statistics, as of January 8, Chengdu rebar inventory was about 304,000 tons, down 10,000 tons from December 27 last year. Wan Qing believes that rising iron ore and inflation expectations have pushed steel prices up.
In this regard, Hu Yanping said that in terms of the production of raw materials, although the major Asian steel mills or related departments did not formally express their position on the iron ore agreement price in the first quarter, the upward trend was determined, and the increase was around 8% in the fourth quarter of last year. The cost will increase. Affected by Australian floods, market expectations and other factors, the iron ore and coal coke spot market is also showing a strong trend. At present, 63.5% of the price of fines in India is close to US$180/ton, and the price of Tianjin Port [8.361.46%] is 1290. Yuan/ton, "This factor will still play a role in the future."
“In fact, the demand for steel in Sichuan this year cannot support the price of such a rise.†The person in charge of Sichuan Hefeng Material Trading Co., Ltd. said that although the energy conservation and emission reduction policies in the fourth quarter of last year suppressed the capacity of steel mills, the output of some products declined, resulting in some Product prices have risen, but steel prices have risen more as a “currency phenomenon†and he is still bullish on future steel prices.
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