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Crazy: Iron Ore Prices Hit Another Five-year High! The Growth Rate of Pig Iron Production Was 6.6%. The Output of Castings Began to Decline. Are the Foundries Dumping Goods?

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Crazy: Iron Ore Prices Hit Another Five-year High! The Growth Rate of Pig Iron Production Was 6.6%. The Output of Castings Began to Decline. Are the Foundries Dumping Goods?
Latest company news about Crazy: Iron Ore Prices Hit Another Five-year High! The Growth Rate of Pig Iron Production Was 6.6%. The Output of Castings Began to Decline. Are the Foundries Dumping Goods?

 

Trader price "fear high" stepping down inventory:

 

Since the beginning of this year, the price of iron ore has risen from 450 yuan per ton. At the beginning of July, it has hit a new high in the past five years, reaching a high point of 924 yuan per ton. But still linger near the high point.

Then, the iron ore price has risen sharply within half a year, what impact will it have on domestic related companies?

In addition to traders stepping up to inventory, steel companies are also stepping up shipments. The person in charge of a steel company in Hebei told the reporter that at present, the sales profit of downstream finished products has actually not kept up with the increase in raw material prices, but if it does not increase the strength of the warehouse, it is likely to suffer losses.

In the interview, the reporter learned that at the beginning of this year, the steel mill's profit per ton of steel was mostly maintained at around 700 yuan, but it has already dropped below 200 yuan. Some steel mills' profits have even dropped to zero point.

 

latest company news about Crazy: Iron Ore Prices Hit Another Five-year High! The Growth Rate of Pig Iron Production Was 6.6%. The Output of Castings Began to Decline. Are the Foundries Dumping Goods?  0

 

Supply and demand are tight, pushing iron ore prices up sharply:

 

The rise in iron ore prices has had a series of effects on downstream companies. So, what is the reason for this round of iron ore prices soaring?

At the beginning of 2019, Australia and Brazil, the major producers of iron ore, suffered severe weather and dam failures. In the first half of 2019, shipments of iron ore from Australia and Brazil totaled approximately 550 million tons, down 8.71% year-on-year. At the same time, the total amount of iron ore arriving in Hong Kong was about 240 million tons, down 8.93% year-on-year.

In the case of tight supply, the demand of domestic steel companies has not decreased. According to the National Bureau of Statistics, in May, the national production of pig iron and crude steel were 72.19 million tons and 89.09 million tons, respectively, up 6.6% and 10% year-on-year.

The tight supply and demand situation of iron ore has further pushed up the rise in futures prices. As of the close of the night of July 26, 2019, the main contract price of the iron ore futures of Dashang was closed at 887.5 yuan per ton, which was nearly 80% higher than the price of 500 yuan per ton in January this year.

However, industry insiders said that although the enthusiasm for iron ore in the futures market has been relatively high in the past six months, from the operational indicators, there is no overheating.

On Monday, the world's largest iron ore supplier, Brazil's Vale, restored 30 million tons of capacity. As overseas mines resume production, supply shortages will ease. However, for the steel industry, how to deal with the risks brought by rising raw materials?

According to industry insiders, from the perspective of the raw material industry chain, coking coal, coke, iron ore, and rebar have corresponding futures contracts. Enterprises should use the futures market reasonably to hedge the risks brought about by price fluctuations. In addition, what the steel industry needs to do is to increase industrial concentration and reduce dependence on imported raw materials.

 

latest company news about Crazy: Iron Ore Prices Hit Another Five-year High! The Growth Rate of Pig Iron Production Was 6.6%. The Output of Castings Began to Decline. Are the Foundries Dumping Goods?  1

 

Eternal Bliss Alloy Casting & Forging Co, Ltd.

Technical Dept.

E-mail:cast@ebcastings.com

What's app: 0086-13093023772

Jaffe

Pub Time : 2019-08-09 16:54:52 >> News list
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