China Iron and Steel Association: The steel demand will be released at a later stage

Since April, the impact of logistics has been increased, and the price of steel include prepainted steel coil(PPGI coil), galvanized steel coil(GI coil) and galvalume steel coil(Zincalume coil) has been adjusted slightly. With the easing of the transportation situation, the gradual resumption of work and production by enterprises and the implementation of multiple stable growth policies, the market demand for painted and coated steel will be released at a later stage, steel productionwill gradually return to normal, the market supply and demand is expected to remain stable, and steel prices will continue to fluctuate slightly.The main issues that need attention later is as follows:

First, the situation of new crown epidemic prevention and control in some areas is still grim.It will have a greater impact on the production and operation of iron and steel enterprises.

Affected by the multi-point outbreak of the epidemic and other factors, all localities have increased and tightened prevention and control measures, and some steel enterprises have been greatly affected by the flow of bulk materials and personnel. Steel enterprises should do their best to coordinate all forces to promote smooth logistics and ensure Provide stable price work and maintain the smooth operation of the industry.

Second, the prices of raw materials and fuels continued to rise, pushing up the production costs of enterprises.

At present, the prices of raw materials such as iron ore and coke are still rising. As of April 15, the pricesof domestic iron ore concentrate, coking coal, metallurgical coke and scrap steel have increased by 65 ¥/MT, 295 ¥/MT and 230 ¥/MT and 107 ¥/MT. Raw and fuel material prices continue to rise, further pushing up the production costs of steel companies.


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2022-04-21

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