The periodic fluctuation of steel price is a comprehensive reflection of the market cycle of steel industry and the result of the chain action of price, benefit, investment, production capacity and supply and demand. Generally speaking, there are several factors that affect the change of steel prices:
1, production cost, which is the basis of steel price change;
2. The relationship between supply and demand is the key factor affecting the change of steel price;
3, the market system, a defective market system may enlarge the imbalance between supply and demand, resulting in price fluctuations.
Generally speaking, steel prices are mainly affected by the following factors:
1, the national macroeconomic operation and the influence of main indicators.
2. The overall trend of the international steel market, the quantity and price of import and export, and the influence of relevant national policies on import and export.
3. The influence of the overall trend of the national steel market.
4. The influence of the overall trend of the leading city market.
5. Economic operation of the industry: macro-control policies, important decisions within the industry, industry development and demand impact.
Precautions:
1, China's high-speed railway construction boom, large-scale construction of urban rail transit and extensive development of reinforced concrete and steel structure buildings have increased the amount of steel used for investment in fixed assets, which will generate huge demand for new steel.
2. With the help of late-comer advantage and other factors, the process of industrialization and urbanization achieved by western countries in the past 100 years may be completed in 30-50 years in China, which makes the annual steel consumption intensity greatly improved under the condition of constant total demand, and thus greatly improves the peak steel consumption in China.