International steel prices will remain high
This year, the international market price of steel is higher in the volatility, the current price is greater than the beginning of the year. Affected by the cost of support and other factors, the international price of steel is expected to remain high after two months.
International steel prices rise in volatility
Steel prices in the international market fluctuations, prices higher than the same period last year. Prepared by the British Mercantile Exchange, mainly reflecting the trend of steel prices in Europe, North America and Asia, the international steel price index (CRU) 1-10 month price index was 165.17 points, compared with the same period last year rose by 9.72%. From the trend, the first 5 months of the international steel market prices continued to rise, the highest price in early June after a slight decline; early September prices rising trend, compared with the beginning of the end of October rose 17.04% over the same period last year rose 9.85%.
The main steel market prices vary. European market prices steady rise, high operating. Compared with the beginning of the end of October, the EU steel hot rolled coil, cold rolled plate, hot galvanized plate, plate, screw steel, wire net, small steel factory price, in addition to hot galvanized plate prices fell 20 U.S. dollars / ton, other varieties increase respectively in the 20-50 dollar / ton. U.S. market prices continued to slump, in October the price level fell 8.88% over the same period last year. At the end of 10, the Midwest steel hot rolled coil, cold rolled coil prices were $580 / ton, 630 U.S. dollars / ton, compared with the same period last year decreased by $50, $30. Asian steel prices continued to rise rapidly, is the largest increase in the region. China's exports to South Korea's plate, the price of small sections from the beginning of 560 U.S. dollars per ton, $533 were up to the current $741, $708, an increase of 32.32%, respectively.
Long material prices rose significantly higher than flat prices. This year, affected by the decline in demand, inventory, increase the cost of raw materials and tight supply and other factors, the international market steel prices continued to rise, the current price level is at the beginning of the year rose 28.88% over the same period last year rose 26.73%, the highest price in recent years. Flat material prices rose 3.34% over the same period last year, an increase of more than the beginning of the year of 8.44%.
Steel prices will remain high after the operation
By the cost, demand, tariff and trade policy changes and other factors, the latter part of the international market, steel prices will remain high, but there will be some differences in the main market and the specific price trend.
Rising costs of raw materials, transportation and energy. Japan iron and Steel Federation said, affected by the rising freight and rising prices of raw materials, is expected in the fiscal year of the iron and steel sector raw material costs 900 billion yen ($7 billion 800 million) more than last year, and the Nippon Steel Corp is estimated to increase 1 trillion yen, higher than the number of 2000-3000 billion yen in April this year is expected to. This year, in addition to the global iron ore, scrap steel and other raw material prices rising, rising freight costs of the impact should not be underestimated. India mining union said the sharp rise in transport costs is the main reason for the recent rise in iron ore prices. Recently, the major powers of iron ore Brazil and Australia have increased shipping costs, India iron ore prices also increased from $35 per ton in September to $46 per ton in October, the price increase of up to $28%. Due to the sharp increase in the cost of shipping and local rail transport, India high grade iron ore spot prices hit a record high, reaching $175 per ton.
Demand continues to grow. International Steel Association recently predicted that this year the world's apparent consumption of 11.976 tons of steel, compared with 2006's growth of 11.209 tons, an increase of 6.8%, higher than expected growth in March of this year. In 2007, Brazil, Russia, India and Chinese steel demand will increase by 15.7%, 25%, 13.7%, 11.4%; the demand growth rate started to slow growth in 2007 4%, the growth rate fell 7.4 percentage points higher than in 2006; and the demand for steel in the North American Free Trade Area is lower than the previous forecast. British Steel Statistics Bureau (ISSB) data show that this year, a substantial increase in steel demand in the Middle East, the first half of the global steel exports to the Middle East grew 56% to reach 17 million 130 thousand tons, an increase of more than 6 million tons. Imports of steel in the Middle East have been significantly higher than some of the major steel importing countries, such as the United States, South Korea, China, etc..
The main import and export tariffs, trade policy changes have a certain impact on the supply of steel. In order to curb excessive growth of steel exports, this year, China's three adjustment of the import and export tariffs on steel products, from 7 to September, China's steel exports did decline. In the case of a temporary difficult to find new alternative sources of supply, China's steel exports will inevitably lead to a reduction in the international steel market supply.
In addition, the United States and the United States and other countries continue to put forward anti-dumping, countervailing measures to prevent other countries to enter the domestic market products, will also play a supporting role in the domestic market price. In October 29th, the European Iron and Steel Union to the European Commission filed for China's steel products anti-dumping application, the products involved are galvanized board, stainless steel cold-rolled sheet steel, the European Union will soon also on China producing wire rod, thick steel plate anti-dumping application. If the establishment of anti-dumping, the EU will be on China's imports of these products to prevent more punitive tariffs, China's steel imports, if imported into the EU, China's steel exports will levy anti-dumping duties because of steel prices.