Will Steel Prices Keep Going Up?
It is believed that affected by many factors, steel prices include seamless steel pipe, welded steel pipe, square steel pipe, pipe fittings and others steel in 2021 will be difficult to significantly fall.
The whole year will still keep fluctuating at high level.
Wang Guoqing, director of Lange Iron and Steel Research Center, said, the momentum and expectations of steel price rising is still exist. But high prices will lead to downstream users purchase cautious, resistance to the rise of sentiment. In the late stage, the market high risk accumulation, superposition cost support weakened. Excessive price rises will be curbed.
China Iron and Steel Association report analysis said, from the demand side, due to the early steel prices (such as carbon steel pipe, stainless steel pipe and fittings etc.) rise faster and wider, shipbuilding, home appliances and other downstream steel industry is difficult to withstand the sustained high steel prices, steel prices in the late period is difficult to continue to rise significantly.
In the long run, steel import and export policy adjustment will be conducive to reduce the dependence on imported iron ore, adjust domestic supply and demand relations. The new Measures for the Implementation of Capacity Replacement in the Iron and Steel Industry will promote the structural adjustment of the iron and steel industry and further improve its concentration.
The steel industry's profit margin is kept within a reasonable range to avoid excessive speculation in the capital market, which is conducive to controlling production capacity and stabilizing the market. “We believe that the rise in steel prices is phased. Fluctuations in prices are something the industry does not want to see.” QuXiuLi said.