Industry News

Domestic steel prices continue to rise

According to the China Manufacturing Purchasing Managers Index released by the National Bureau of Statistics, the PMI index in October was 51.4%, which was a slight decrease of 0.1 percentage point from the previous month, but it has remained above the critical point since March and has been at the critical point for eight consecutive months. In the expansion range, the overall manufacturing industry continued to pick up.

From the perspective of transactions, most merchants reported that the low-priced resource shipments in the morning were generally acceptable, but as prices continued to rise in the afternoon, the high-priced resource transactions were blocked. In terms of steel mills, the price of raw materials such as coke and iron ore has continued to rise recently, resulting in a significant increase in steelmaking costs. In addition to the recent good destocking of steel mills, most steel mills have actively increased their ex-factory prices, which has played a certain role in boosting spot prices. In terms of demand, there are currently projects in most areas in a short period of time, and short-term downstream steel demand is expected to remain relatively high.

In the autumn and winter, the environmental protection and production restrictions in the northern region have been tightened, and the operating rate of steel plants has been restricted. At the same time, as scrap steel becomes more cost-effective, demand for iron ore may continue to be squeezed. In terms of imported mines, iron ore shipments from overseas mines remained optimistic in the fourth quarter, and port inventories continued to accumulate, putting pressure on mine prices. On the whole, the iron ore market is pessimistically expected to increase due to the dual suppression of the large increase in overseas mine shipments and the downturn in the downstream finished material market prices. It is expected that the iron ore market in November may maintain a weak and volatile operation.

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