Declining Demand, The Steel Market Continues To Adjust
May 31, 2021
1、Steel price callback.
In terms of raw materials, the supply and demand of iron ore has gradually shifted to a looser trend, port inventories have rebounded, and prices have fluctuated and dropped. As steel prices continue to fall, steel mills' profits have shrunk significantly, which has suppressed iron ore prices to a certain extent. Steel is a fully competitive industry, and steel prices are ultimately determined by the relationship between supply and demand.
2、Profits are compressed.
It is necessary to deal with the price fluctuations of bulk commodities such as iron ore, copper and corn, put forward comprehensive control measures and suggestions in a timely manner, and strengthen market expectation management. The source of my country's imported mines is highly concentrated, and prices continue to rise, which severely compresses the profits of the steel industry, and leads to increased pressure on the production cost of downstream manufacturing, which affects the overall competitiveness of manufacturing products.
3、Low-carbon development.
Through vigorously promoting industrial structure adjustment, energy structure optimization, ultra-low emission transformation and low-carbon transformation, green development has achieved remarkable results.
After years of hard work, the domestic steel industry has shown a high-end, green, intelligent, and international high-quality development trend. Some representative companies have been at the forefront of the world's steel intelligent manufacturing and green development, and have strong international competition. Earnings will stabilize.
