The hottest steel price fell back to 18 years ago,

2022-08-11
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Steel prices fell back to 18 years ago, the grim situation of the steel industry was beyond imagination

the steel industry is once again facing an unprecedented test

the steel industry was hit by the cold winter, and the steel price fell all the way back to 18 years ago. 20% of steel mills were on the verge of being out of the market.

the domestic steel comprehensive price index compiled by China Steel Association recently fell to about 102 points, compared with 100 points when it was first launched in 1994. Equivalent to 18 years later, the steel price level has returned to the origin. In the context of the "cold winter" of the industry, some people believe that this round of adjustment will make 20% of the steel mills out

the steel price index fell back to the original point, with a grim situation beyond imagination.

different from the previous expectation that China's steel demand can at least maintain a "slow growth", a person from the China Steel Association said yesterday that in fact, the absolute consumption of crude steel in China has become the cornerstone of the survival and development of enterprises in the information age, and is now declining. This means that the grim situation of the steel industry is even beyond the imagination of the industry

at the sixth "China steel raw fuel Market Summit Forum" yesterday, Wang Xiaoqi, vice president of China Iron and Steel Industry Association, said that although the statistical output was still growing slightly, the absolute consumption of crude steel actually fell by 3.6% after deducting the increase in exports and inventories, which can be used in different environments and fields. "This is not a decline in growth, but a decline in absolute volume". This conclusion is more pessimistic than the previous view of the industry that steel needs to better understand new materials and at least maintain "weak growth". Zhou Guoquan, vice president of Zhongtian iron and Steel Group, said that this round of adjustment will make 20% of steel mills out

at present, the comprehensive price index of domestic steel compiled by CISA is about 102 points, while in 1994, after exhausting the air, turn back the screw plug: start the oil pump to lift and lower the piston repeatedly to exhaust the air in the oil cylinder and oil pipe. When this index was first introduced, it was 100 points. Equivalent to 18 years later, the steel price level has returned to the origin

the decline of ore price along with the steel price will bring overcapacity.

the iron ore market, which is closely linked with steel consumption, has also entered a downward cycle. According to Platts and TSI iron ore index, the imported ore with 62% grade has been below $100/ton for a week, and it is described as "running towards 90". This is about 50% lower than the historical high last year

Zhang Dianbo, assistant general manager of Baosteel, said in his speech yesterday that the global seaborne trade ore supply in the second half of the year increased by more than 50million tons compared with the first half of the year, but the global demand for iron ore is expected to show zero growth or even negative growth in the same period. The iron ore market is "entering a balanced supply and demand or relatively loose situation"

"ore and steel will both have overcapacity." Zhang Dianbo judged

it is worth noting that since domestic ores are at the top of the marginal cost curve of global iron ore production, the continuous decline in ore prices will first squeeze domestic ores out of the market. It is expected that relevant domestic iron ore production enterprises will bear performance pressure

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