Only in the first ten days of May, the domestic steel prices skyrocketed, increasing by 100 to 200 per day. The price of individual steel products has risen by 600-700 yuan per ton, and the price increase momentum is showing intensified. Many tricycle companies are like hot pots. The ants face the surging steel prices. Buying will inevitably lead to a sharp rise in costs; if you don't buy, there are no raw materials, and the factory will not be able to start and wait to die.
From the perspective of steel "weathervane" rebar, the latest weekly report of China's steel price index shows that rebar at the end of March was 4751 yuan/ton, and at the end of April it rose to 5146 yuan/ton, an increase of nearly 400 yuan. The average price of 25mm grade 3 rebar in the city was 5,661 yuan/ton, an increase of 106 yuan/ton from the previous day. The hot-rolled coil price reached 6,118 yuan/ton that day, breaking the record of the highest point in history in 2008.
Why steel prices have risen like a rocket during this period? The reasons are as follows.
1. The price of iron ore raw materials has risen
Luo Tiejun, vice chairman of the China Iron and Steel Association, believes that the main reason for the high iron ore price is the high concentration of the supply side and the dominant power in the hands of the seller. In addition, the market expectations and speculation of iron ore are very high. Australia, as the largest seller of iron ore exports, has recently frequently interfered in our internal affairs and made inappropriate remarks. This has led to very tense relations between the two countries and contributed to the increase in iron ore prices and supply problems.
2. Carbon Dafeng proposed that steel mills limit production
The first draft of the recently published "Carbon Peak and Carbon Reduction Action Plan for the Iron and Steel Industry" proposes that the steel industry will achieve its peak carbon emissions by 2025. Production reduction is conducive to the upward price of steel. Experts believe that as carbon peaks and carbon neutrality are incorporated into the overall layout of ecological civilization construction, many key industries such as energy, transportation, industry, and construction will usher in a new round of changes.
If China's steel production ranks first in the world, then Tangshan can be ranked second. The near-term production in Tangshan has intensified market expectations of a contraction in steel supply, and has promoted a rapid rebound in costs and recent steel prices. From a full-year perspective, under the background of carbon peaks and carbon neutrality, the domestic steel market will show a decline in supply It is expected that the overall upward trend of steel prices will continue. Therefore, in the medium term, we can consider bargain-hunting buying opportunities for materials.
3. The demand for steel is strong, and all walks of life have increased their demand for steel
Judging from the quarterly reports of listed construction companies, the order volume of companies has increased significantly. At present, the domestic monetary policy is relatively stable, the capital pressure of construction companies is not great, and the demand for steel is very considerable. Although the traditional small peak season has passed, the downstream demand is still in the peak season. The consumption of rebar from May 6 to May 8 was 4 million tons, which was 56,000 tons higher than the same period last year.
In addition to the construction industry, the home appliance industry also announced price increases at the end of last year. In the first quarter of the year, many leading companies such as Gree and Midea raised prices again. "May Day" was originally a traditional discount season for the home appliance industry, but this year has ushered in a wave of price increases, with prices ranging from 5% to 20%.
Steel prices soared
What is the impact on the tricycle and auto parts industry?
1. The prices of tricycles and auto parts continue to rise.
As steel is an important raw material for the production of tricycles, electric vehicles, and auto parts, it is imperative to increase the price of the whole vehicle. Frames, batteries, tires, brake pads, brake discs, suspension parts, ball joints and other parts are also rising. Waves of price increase notices indicate that the price increase in the tricycle industry has spread throughout the industry. Dealers The cost of car purchases for consumers and consumers will continue to increase.
2. The car factory does not accept reservations, and some dealers can hardly find a car
In the case of raw material prices rising every day or even half a day, most manufacturers clearly stated that they would not accept distributors' advance payment. The price is subject to the quotation on the day. Orders are locked in full price, and oral orders and deposit orders are not accepted. Large dealers can also lock in vehicles at high prices. Small dealers and dealers operating with multiple brands may find it difficult to order the goods, and the situation of selling one less than one may occur.
3. Large factories can survive, but small factories can hardly "start the pot"
The price increase turmoil even tests the strength of an enterprise. In this price increase turmoil, large factories rely on their own strong strength, bargaining power with upstream supporting enterprises, and a rich product line that may buck the trend and achieve unconventional development. Small factories' weak ability to respond to market changes, relatively weak economic strength, and unaffordable endurance for high-priced steel, are "unarmed" and cannot open the pot. Temporary suspension of production is inevitable.
Email: