China's steel industry encounters embarrassment ag

2022-08-24
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Three mines tighten supply China's steel industry encounters embarrassment again

three mines tighten again to discuss relevant solutions supply China's steel industry encounters embarrassment again

China Construction machinery information

Guide: iron ore has entered the rising channel again. The head of a large ore trading company in Rizhao revealed that at present, not only India's ore export restrictions, but also the three major mines are controlling the volume of resource shipments to the Chinese market, resulting in tight high-grade resources and strong high prices. According to United Metal data

iron ore once again entered the "rising" channel. The head of a large ore trading company in Rizhao revealed that at present, not only India's restrictions on ore exports, but also the three should be tightened in time; Large mines are also controlling the delivery of resources to the Chinese market, resulting in a tight supply of high-grade resources. At the same time, the current price will soon reach the stage where the amount of waste plastics is greater than the production of plastic products, and the high level will be firm. According to United Metal data, 63.5% of the external quotation of printing powder on the 10th has reached US dollars/dry ton

at present, the negotiation is in a sensitive period, and the trick of "reluctant sale" from mines makes the steel industry face an embarrassing situation again

10 learned from the port that at present, merchants have a strong bullish attitude towards the future market, most of them are reluctant to sell and do not want to ship, high-grade resources are very tight, and iron ore prices continue to face upward pressure in the later stage. It is understood that in the current spot market of imported iron ore, the price of 63.5% Indian fine ore in Tianjin port is 1250 yuan/wet ton, 62% PB fine ore is 1190 yuan/wet ton, 62% Indian fine ore in Rizhao port is 1180 yuan/wet ton, 61% Indian fine ore is 1130 yuan/wet ton, and 62% Australian lump ore is 1340 yuan/wet ton

"as the first demander of iron ore, with domestic steel mills limiting power and production, the demand for iron ore is also falling, which should be a check on the three major mines, but this is not the case." Said the head of the raw material procurement department of a steel plant in Hebei. This statement is true. According to the data released by China Steel Association on Monday, the total output of China's major steel companies in October was 158 60000 tons, a decrease of 2% compared with last month. However, the reduction of steel production and iron ore demand in China did not lead to the decline of shipments from the three major mines. According to foreign media reports, according to the data released by Australia's Hedland Port Authority (responsible for managing BHP Billiton's port shipments of iron ore exported overseas), the port's iron ore shipments in October were 16.99 million tons, an increase of 8.5% compared with 15.677 million tons in September

at the same time, however, the flow of ore has changed. In June, the shipment volume of Australia's three major iron ore producers to China fell sharply by 40% year-on-year to 647 40000 tons, while the volume of shipments to Japan surged to 711 over the same period 20000 tons, a year-on-year increase of nearly three times

all kinds of signs show that the "worry about selling" of ores in the three major mines is not empty talk. An analyst who did not want to be named expressed concern that the ore price would not decline because of the decline in our demand, which would have a huge impact on the cost of steel mills. According to this trend, coupled with the pressure of the depreciation of the US dollar, the rise in iron ore prices next year is inevitable

Xu Xiangchun, my director of iron and steel information, said that in fact, reducing or increasing supply has always been a common trick of the three mines, both inside and outside the negotiation. Because they are in a monopoly position, the three mines will inevitably rapidly raise ore prices and affect market psychology by reducing supply. Whether the current rise in ore prices is related to negotiation momentum cannot be concluded, but objectively speaking, it is bound to help the seller consolidate its strong position and obtain higher interests. To be sure, it is not easy to return to the long-term association track after one-year operation of quarterly pricing

for the prediction of this year's iron ore pricing model, Dai Guoqing, a senior person in the steel industry, believes that the trend of China's spot market price as the basic reference price will not change. In addition, the large price difference between the long-term association price and the spot price is unsustainable, and it is likely to become that the spot price fluctuates around the long-term association price

as for the statement "whether the long-term association price may change back to the annual price or half year price next year", Dai Guoqing said that the key is whether China's steel demand will increase significantly next year. If ore producers can reach a consensus with Chinese steel producers on China's steel demand next year, it is possible to return to the annual pricing of foam granulator. However, if China's steel demand is sluggish next year, it can only increase by a low margin, and the steel price is roughly stable throughout the year. Even if quarterly pricing is implemented, it is not much different from annual pricing. Therefore, it is possible to continue to implement quarterly pricing

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