The cost factors that affect the rebar futures price include raw material cost, energy cost and labor cost.

1. Raw material cost

Iron ore is the most important raw material for rebar production. The prices and quantities of imported ore and domestic ore purchased by different iron and steel enterprises are different, and the technical and economic indexes of their respective blast furnaces are also different, so the raw material costs of different iron and steel enterprises are quite different.

2. Energy costs

Coke is a necessary reducing agent, fuel and raw material column skeleton for rebar production. At the same time, steel production also consumes a lot of common media such as coking coal, water, electricity, wind, gas and oil. Different iron and steel enterprises buy these public media at different prices and quantities, and their technical and economic indicators are also different, so the cost of energy and public media varies greatly among iron and steel enterprises.

3. Labor cost

Labor cost is an important cost in steel industry. Although there is a big gap between China's manual labor productivity and that of developed countries, the gap between the cost per working hour (mainly per capita income level) is even bigger.

Supply and demand factors

The relationship between supply and demand determines the price trend. After the financial crisis in 2008, China's large-scale investment boosted the demand for rebar and wire rod. The average price of rebar has been higher than that of hot-rolled coil, and the average price of rebar of 20 1 1 year is higher than that of hot-rolled coil 220 yuan/ton. However, with the increasing overcapacity of rebar, rebar price and hot coil price are approaching. By 20 13, the average annual price of hot coil has been higher than that of rebar.

In addition, the economic development cycle of China affects the demand for rebar futures. When the economy is developing well, the demand is large and the price is high. On the contrary, the rebar futures price is low.

market factors

The market factors that affect the rebar futures price include the capital supply in the domestic market, the competition situation in the domestic market, the market expectation, the related influence of financial market and commodity market, etc.

1. Capital supply in the domestic market

Capital determines the price level of steel. When the market funds are relatively sufficient, it often corresponds to the high price of rebar futures, while when the funds are tight, it often corresponds to the low price of rebar futures.

2. Competitive situation in domestic market

The influence of domestic market competition on market price can not be ignored. The competitive strategies chosen by steel mills with different structures are different, which determines that the market competitive situation will be different. Judging from the national market, the rebar market is basically in a state of complete competition. No domestic steel mill is in a dominant position, but some regional leading steel mills, such as Hebei Iron and Steel in Beijing, Tianjin and Hebei. The price adjustment of rebar factory has a great influence on its dominant market, while other markets pay less attention to it.

3. Market expectation

Market expectation plays an amplification role, and price fluctuation can be boosted by changing supply and demand and market funds. If the market expects the price to rise, dealers will actively place orders, thus boosting the demand for rebar. Rebar futures prices will also rise.

4. Relevant market impact

Since the listing of steel futures, iron ore futures, coke futures and coking coal futures, China's steel products have more financial attributes, and the steel industry chain has been greatly affected by fluctuations in financial markets and commodity markets. From the trend of rebar futures and spot market prices, there is a strong correlation between futures prices and spot prices.