China has strengthened its supervision over iron ore once more, which has not only led to a slump in China’s iron ore, but also dragged down the international market, which inevitably makes the market worry that the recovery of steel prices may be short-lived. There is still support. The tense situation in Russia and Ukraine also affects the price of raw materials and steel exports. The drop in the price of iron ore in China is a short-term disturbance, and the price of steel will still usher in a new wave of upward opportunities.
After the Lunar New Year, the Chinese government took action on iron ore twice, jointly interviewed relevant iron ore information companies, and asked relevant companies to provide the basis for the increase in mineral prices. It is not allowed to fabricate and publish false price information to prevent malicious speculation and hoarding. As soon as the news came out, Dalian iron ore fell 15% last week, and New York iron ore futures also fell 14% in a week.
However, recently, it coincides with the recovery of steel prices in Asia, and the latest prices of major steel mills in various countries have risen across the board.2002-TW) last week’s March price also rose by 2.44%, indicating that the inflection point of the steel market’s rebound has come, but the plummeting iron ore has made the market worry that the rebound may be short-lived.
Industry insiders analyzed that the rebound in steel prices this time was mainly supported by two major factors, “demand” and “raw materials”. Among them, the restocking of inventory following the downstream year and the upcoming traditional peak season, the demand recovery trend is clear. , The geopolitical conflict between Russia and Ukraine may force the export of steel and semi-finished products of the Independent National Association to tighten.
In terms of raw materials, although there is noise of iron ore falling, at present, the tension between Russia and Ukraine has further pushed up the price of crude oil; thousands of metal mining companies such as coal, tin and nickel in Indonesia have not submitted the annual report according to government regulations. The work plan was forced to stop, and the prices of the main and auxiliary raw materials for steelmaking, such as strong metallurgical coal, remained high.
In addition, in response to the trend of environmental protection and emission reduction, large steel mills around the world are increasing the use of high-quality iron ore, and the price is relatively high. Therefore, the industry also believes that although the short-term iron ore is negative, it still does not hinder the upward trend of medium and long-term steel prices.