Steelmaking costs of steel mills increase, and steel prices may fluctuate at a high level
Date: 2022-04-19
Steelmaking costs of steel mills increase, and steel prices may fluctuate at a high level
On April 18, the domestic steel market was mixed, and the ex-factory price of Tangshan ordinary billet was stable at 4,790 yuan/ton. Since March, the downward pressure on the domestic economy has increased, but the implementation of macro policies is increasing, including the central bank’s comprehensive RRR cuts, and multi-sectoral guarantees of smooth freight transportation. On the 18th, the steel market sentiment was relatively stable, and the trading volume was acceptable.
Affected by the domestic epidemic and the international geopolitical situation, the downward pressure on the economy has increased since March. In order to support the development of the real economy, the central bank decided to cut the RRR by 0.25 percentage points on April 25. At present, the national infrastructure investment is further strengthened, and the number of closed expressway toll stations is also decreasing day by day. However, the domestic epidemic situation is repeated, the real estate and manufacturing industry are not performing well, and the performance of steel demand is still unstable. In addition, the prices of raw materials and fuels remain high, the profits of steel mills are shrinking, and the willingness to support prices is strong. In the short term, the market is intertwined with long and short positions, the situation is complex and changeable, and the price of steel may fluctuate at a high level.
Post time: Apr-19-2022
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