Market supply and demand fundamentals to promote stainless steel prices

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Market supply and demand fundamentals to promote stainless steel prices

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Specific performance: First, the downstream steel market pick up, spot steel prices continued to grow, production will increase, driving up the demand for iron ore upstream. Second, the high quality ore supply is highly dependent on imports. Thirdly, due to the continuous rise of coke prices and the policy of limiting environmental protection, the fourth is the large stock of medium and low grade ore in domestic iron ore stocks and the structural shortage of high grade ore.Stainless Steel Sheet Price List


Since 2016, the investment in national infrastructure construction has been stepped up and the amount of real estate starts has picked up, effectively boosting domestic steel consumption. In 2016, the apparent consumption of crude steel was 710 million tons, up 9.54 million tons from the same period of last year, up 1.3% from the same period of last year and accounting for 50.4% of the global steel output. At the same time, under the supply-side reform policy, going to production and inventory reduction has contributed to the drop in the supply of steel products.Stainless Steel Sheet-Coil Products List


Therefore, driven by the fundamentals of consumption growth and supply declines, the steel prices in 2016 continued to rise and the profitability of steel mills continued to improve. The demand for replenishment is an important force in boosting iron ore prices in the previous period. First of all, the macroeconomic data show that the domestic economy has stabilized and the investment demand for raw materials continues to increase, boosting the prices of industrial products. Second, partial substitution of blast furnace capacity for electric furnace capacity has led to an increase in demand for high grade iron ore. Finally, the price of iron ore is not high from historical absolute value. Given the insufficient supply of domestic ore and the increase in bargaining power of foreign ore, the price center of iron ore keeps moving up.alambre suave de acero inoxidable aisi 304 0.15mm


Since 2017, iron ore port stocks have shown a strong upward trend. Historically, there is a positive correlation between iron ore prices and port inventories. When the iron ore market is in a replenishment cycle, port inventories will show an upward trend and prices will rise as demand increases. In the second half of 2016, the capacity-to-capacity of the stainless steel industry accelerated somewhat. However, the Company continued to eliminate its long-term capacity shutdown with little impact on its effective capacity and output.Big Discount Aisi 329 Stainless Steel Bar

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    user icon hhm1020 on 01/17/18 says:
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