Steel industry, iron and steel prices lookout cost pressures facing

The domestic steel market has been rising the past two months, and recent iron ore price increases and further boost the market bullish sentiment. Driven in a variety of factors, domestic steel prices began to increase steel prices and substantially modify the price adjustment frequency. According to my understanding, many varieties of steel price has already broken last year’s high point, the soaring steel prices have caused a lot of downstream steel companies feel the pressure of cost.

    Wuhan Iron and Steel recently announced in May the first steel policy, in addition to cold-rolled coils up 100 yuan per ton, the hot-rolled, wire, etc. The main products are greatly increased 500 yuan / ton, which is the fourth consecutive time this year Wuhan Iron and Steel raised prices. As the leading steel companies, Wuhan Iron and Steel raised steel prices, the message is to stimulate other domestic steel mills have followed suit, Kunming Iron and Steel, Nanjing Iron and Steel, Liuzhou Steel and other steel enterprises have raised prices. In addition, the steel price adjustment frequency was significantly accelerated, from the monthly price adjustment into frequent price adjustment.

    According to my understanding, continued to rise after this round, many varieties of steel prices have already exceeded last year’s high point level. Statistics show that in the United Steel, the Shanghai market, 5.5mm hot rolled prices currently 4,560 yuan / ton, compared with 2009, when the high point of 4,300 yuan / ton, up 260 yuan, up 1.0 cold plate 530 yuan / ton, 20 in the board and 480 yuan respectively, up 1.0 zinc / ton and 70 yuan / ton.

    Real estate:

    Building costs are not dominant

    In this round of steel price rally, the building material price increases highlighted. However, the current building material prices did not affect the real estate market.

    More components in house prices, including land cost, construction and installation costs, taxes, and other macro-economic situation. Real estate experts said South Korea the world the same on paper, in the case of high prices, the cost of building materials prices in the real estate is not dominated, «the price of land is the key factor.» He said.

  Household electrical appliance enterprises:

    Cost pressures will increase

    Continuous improvement in market conditions made the main varieties of steel prices continue to uplift steel appliances including a record high since 2009.

    It is understood that the necessary household appliances to steel plate mainly in the past six months, major appliances absolute increase steel prices overall more than 500 yuan. It is reported that steel prices rose 10% each, household appliances production costs will increase by 3%.

    Auto manufacturers:

    Fear volatility of steel

    Since the first quarter, car panel steel makers raise the price of the vehicle. In general, the iron and steel accounted for more than half of vehicle weight, in addition to car panels, the parts maker is also a large number of steel.

    »The hardest response, there are ups and downs of steel.» Enterprise of a car head told reporters.