On the rise of steel prices

Steel has now become a hot-selling product in China. After several price adjustments, domestic steel prices have risen by more than 1 1,000 yuan. At present, there are long queues of trucks pulling steel in front of many large steel mills in China, and many truck drivers have to wait for several days to load. The throughput of many steel trading markets has also reached the highest point in history, so what caused the steel price to rise so fast? The following small series will take you to analyze it.

As we all know, one of the most important raw materials now is iron ore. At present, the international iron ore price is rising, and the production cost of enterprises will increase with the rise of raw material prices. Enterprises can only adjust prices in order to seek profits.

2. Affected by the epidemic, many construction projects in China were postponed last year and the year before. Now that the epidemic has been completely controlled in China, these delayed construction projects have to start. These construction projects have stimulated the market demand just now, and the market demand is increasing, so manufacturers will naturally raise the ex-factory price.

3. China has been very strict in ecological and environmental inspection, and some enterprises that fail to meet the standards have been resolutely suspended for rectification, which has also led to the closure of many small and medium-sized steel mills. The closure of these unqualified factories has also reduced the total output of steel products, and the market demand has been increasing. However, the number of manufacturers has been decreasing, which has also caused tight supply and demand, so the price of steel has been increasing.

These are the reasons for the current rise in steel prices. So will steel prices continue to rise? Bian Xiao personally believes that steel prices will rise, but the increase will begin to decrease.

1. The construction industry has the greatest influence on the increase of steel products. Due to the rising price of steel, many construction companies began to increase production costs. Most construction companies have begun to significantly reduce the proportion of advance payment for purchasing steel. If it continues, many construction companies may stop working because of financial problems, which will affect the sales of steel products.

2. After a few days, steel prices rose, and many steel dealers began to stock up and wait for higher prices to sell. However, a large number of dealers hoarding goods will lead to difficulties in the circulation of steel in the market, which will seriously affect the price of steel.

3. In order to supply the market, steel production enterprises began to greatly increase their production capacity. With the increase of production capacity, more steel will appear in the market to meet the demand, and the price of steel will still be affected after the supply and demand reach a balance.