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Reveal the changing trend of pipeline raw materials in China

Views : 2955
Author : PARIS-Terry Ding
Update time : 2020-12-30 12:10:17
As we all know, if China's steel raw material prices are not affected by the international situation, the price changes will not be large. Basically, there is room for prices to rise twice a year

At present, China's steel production capacity has reached the world's average output, and China's iron ore raw materials are mainly imported from vale of Brazil and Li and bito of Australia, two of the world's largest iron ore miners. China's steel market has abundant reserves of raw materials. However, the environmental protection actions and carbon saving and emission reduction measures strongly advocated by the Chinese government have achieved remarkable results. The output of large and medium-sized steel plants in China has been effectively controlled. At the same time, the price of steel raw materials in China is rising year by year.

Next, we will explore the non international impact of China's steel raw material price trends. China's raw material prices are usually concentrated in two months, and the price increase is obvious. China's large-scale steel mills are mainly concentrated in the northern cities of China, close to Beijing. Every winter, the haze phenomenon in the north is relatively serious, so the supervision of the environmental protection department is very strong. The production restriction of steel plants will lead to the downstream primary processing and other industries are also deeply affected, so it will lead to the price rise of steel raw materials. Generally, foreign orders are very busy from November to December, which also leads to the increase of supply and demand.

On the other hand, the price factor is the resumption period after the Chinese New Year. At this time, the downstream steel processing plants start to operate. After debugging, the production line needs to run. Some unfinished orders before the Spring Festival need to catch up with the delivery date. At the same time, new engineering projects at home and abroad have started, and orders have gradually increased, so the price of raw materials will rise slightly

From June to July of each year is relatively off-season. Due to holidays and Ramadan, overseas orders are reduced, and the prices of raw materials are relatively stable. Therefore, the price changes of raw materials in China mainly focus on March and November after the Spring Festival
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