The price of scrap steel is affected by three factors. First, the quantity of scrap steel in the market is the spot quantity. There are plenty of scrap steel in the market, so its price is low. On the contrary, it is high. The second is the sales price of finished steel products. Strong sales of finished products and rising prices have driven steel mills to expand production and increase output. Second, the price of scrap steel has risen. Enterprises with higher sales price of finished steel products often have a higher voice in the price of scrap steel, which can drive the market price of scrap steel. Third, the prices of pig iron and iron ore affect the market price of scrap steel. From 2005 to 2008, the agreed price of imported iron ore increased by 765,438 0.5%, 65,438 0.9%, 9.5% and 96.5% respectively. It increased by 339%, and the market price of scrap steel increased by 200% from 2005 to 2008. At the end of 2004, the average ex-factory price of steelmaking pig iron in China was 2399 yuan/ton, and that of heavy waste was 2326 yuan/ton, with the price difference of 73 yuan/ton. The lowest price in 20091early October 165438+ pig iron 246 1 yuan/ton, and heavy waste 1967 yuan/ton were all lower than the price in 2004, with a price difference of 494 yuan/ton. Pig iron supports the fluctuation of scrap market price. The quantity of scrap market, the demand for steel and the price of iron ore roll together with the scrap price like a troika. Figure 1-5 shows the relationship between scrap price and scrap quantity, pig iron price and steel demand, indicating that scrap price is inversely proportional to scrap market quantity; It is directly proportional to the demand for riveting materials and the price of iron ore. Of course, there are other factors that determine the price of scrap steel, such as political factors and natural disasters. And the steel price market with large steel output will become the weather vane that affects the price of scrap steel. In addition, changes in other related production capacity will also raise and lower the market price of scrap steel. For example, due to technological progress, the scrap steel produced in the construction industry or mechanical processing industry has decreased; With the technical progress and quality improvement of steel mills, the self-produced scrap steel decreases. With the technical progress of railway development, a large number of equipment, facilities and tracks need to be updated, and the state will stimulate the economy and increase investment in capital construction. But it is mainly these three analyzable factors. As iron and steel enterprises and scrap iron and steel operators, we should always pay attention to the changes in upstream and downstream industries, and strive to achieve "he moves me to be a prophet" and "he moves me to be prepared". In this way, we can "know ourselves and ourselves, and win every battle" and maximize the profit of our products. It is very, very critical to seize the procurement opportunity. It is very difficult to buy at a low price and sell at a high price. Everyone knows this truth, and everyone needs to keep learning. However, if you really do it, it will be used for life practice, accumulation and reciprocating cycle.