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    China Steel Association Said: Late Price Of Steel Will Remain High.

    2008/7/23 0:00:00 41

    Yesterday, the China Iron and Steel Association monthly report shows that in June, China's steel production growth slowed down, steel exports continued to decline, the market supply and demand basically balanced, domestic steel prices maintained a relatively stable operation situation; the international steel market due to tight supply, low inventory, steel prices continue to rise, the latter market will continue to run high.

    According to statistics, in June, domestic steel prices showed a slight adjustment trend.

    At the end of 6, the domestic steel composite price index was 161.47 points, an increase of 4.61 points, an increase of 2.94%, a 3 percentage point drop from last month's rise.

    In June, compared with May, the price of medium and long materials of eight main steel varieties monitored by CSC dropped from 1.6 to 2.96, and the price dropped 55 yuan / ton and 104 yuan / ton respectively. The price of plates and pipes continued to rise, with seamless tubes and galvanized sheets increasing significantly, the index Rose 13.32 points and 8.67 points respectively, and the price rose 616 yuan / ton and 448 yuan / ton.

    The main reason for seamless pipe rising is that the price of pig iron, scrap steel, coke and tube billet increased sharply and the seamless pipe export increased. The plate, hot plate, hot rolled plate and cold rolled sheet rose relatively small, the index rose 2 to 5 points, and the price rose 89 to 258 yuan / ton, or fell significantly.

       

    According to the report, the coking coal resources in the domestic iron and steel industry continued to be scarce in June, and the coking enterprises in the North raised the coke prices for the two time. At the end of 6, coking coal and metallurgical coke increased by 488 yuan and 404 yuan respectively, rising by 38.2% and 17.1% per month, and the prices of scrap and pig iron increased by 161 yuan / ton and 338 yuan / ton, 4.2% or 7.6% yuan, or more than that of the same month, and the spot price of domestic and imported iron ore continued to rise.

    Iron and steel production costs continue to rise, and strong support for domestic steel prices.

    Meanwhile, in June, steel stocks in 26 main markets in China decreased by 22 thousand tons, a decrease of 0.8%, which has maintained a downward trend for 4 consecutive months.

    By the end of 5, the production and sales rate of large and medium-sized steel enterprises reached 98.64%.

    China Steel Association believes that due to the tight monetary policy of the state, some enterprises have been in a tight financial position, especially steel trading enterprises, which are affected by capital and even selling.

    As steel prices continue to rise, some customers also have a wait and see situation.

    Because of the rising price of raw materials, electricity and pportation, and the state's efforts to eliminate backward production capacity, China's steel production will continue to maintain a low growth trend.

    In the second half of the year, the reconstruction of infrastructure and housing after rain and snow will increase the demand for steel.

    Steel production growth slowed down, steel demand will not be significantly weakened, the domestic supply and demand basically balanced situation will not change.

    Under the dual role of demand pull and rising cost, it is expected that steel prices will remain at a high level in the latter part of the domestic market, but there may be slight fluctuations in different varieties and periods.

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