I really don’t know if the answers given by the people above are ignorant, or if they are laypeople who don’t understand the steel industry. There are actually people talking about futures.

The price of steel is related to the price of iron ore and coke. Iron ore has grown from 23 yuan two years ago to about 150 yuan in June, and has retreated recently. Because there are now 80 million yuan in iron ore stockpiles in major ports, and major traders have huge inventories. Obviously supply exceeds demand. Because of the surge in the past few years, many iron ores are purchased from abroad. As long as a 10% down payment is equivalent to 10 times the financial leverage, and reservations must be made 3-6 months in advance, that is to say, although there are huge However, there are still considerable iron ore orders arriving in Hong Kong every day. The same goes for coke. Look at 40% of the companies in Shanxi that have stopped production, and the price is still rising. It can rise and it will definitely rise in 3 years, it will definitely double in 10 years, and it will definitely quadruple in 100 years. What’s the use of talking about it now.

It’s too late to run away now. Everyone in the industry knows that steel traders have lost more than 40% of their profits in the past two years, and there are still people who are urging prices to rise, which is misleading!