The analysis for the steel price in second half year in 2010

The analysis for the steel price in second half year in 2010

Generally speaking, steel is one of the popular raw materials for industrial machines. So the price of the steel means a lot, I suppose. All in all, in the second half in 2010, Chinese steel market operating environment in which opportunities and challenges, profitable prices and negative factors coexist and continue to heat up direction. It is evaluated by the following aspects.

Firstly, it is the increasing internal and external demands. It is true that the requirement for the steel has kept for a sustainable increase since this year. It is reported that during the beginning 4 months, Chinese steel consumption has risen about 30% of index. And according to the PMI industry index in April, we can infer that the index of the fields of fabricated metal products, electrical machinery and equipment manufacturing and general equipment manufacturing industry has over 60%. No doubt, they would continue to play a leading role in the whole industry. Even though the influence caused by the financial crisis weakens the consumption intensity to some extend, the continued strong growth would not change and the overall steel consumption index would remain high.

Secondly, the additional cost factors appear. It reflects on three ways: the exhaust of early imported and relatively low-cost iron ore leads to the employment of higher iron ore prices; quarter iron ore price agreement leads the price of iron ore spot prices to converge; the rise of the cost of coke. Thus, the price would take a proper adjustment.

Thirdly, production release is inhibited. It is generally caused by: the inhibition of production capacity, the restrictions on iron ore supply and the limited power supply. And the market prices are bottoming out.At last, it is a substantial increase in profits. That steel prices have bottomed out and the output has output is bound to the iron and steel enterprises to achieve profitability. According to National Bureau of Statistics data, it shows that at the first quarter, among 39 categories of industrial sectors, 38 industry profits up. Especially, the steel industry profits rose 338-fold increase in the most obvious.In words, the prices for the steel would increase to some extend within its popularity. But it is not necessary to worry about the situation of deficit among iron and steel enterprises as the increasing manufacturing costs. It is just a market rule and regulation.If you want to know about the mechanical knowledge, please confirm at http://www.seekpart.com/ http://www.articlesbase.com/industrial-articles/the-analysis-for-the-steel-price-in-second-half-year-in-2010-2776569.html

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