Undeniably, strict control of the epidemic in China has achieved good results. Domestic enterprises have resumed work, real estate, industrial manufacturing and automobile production have gradually increased their production capacity, and the demand for steel has gradually recovered. However, 80% of China's iron ore is imported, and iron ore is the main raw material of steel products. Therefore, the heavy demand has pushed up the price of iron ore. However, compared with the soaring price of iron ore, this slow turnover has a huge contrast, which is completely beyond the normal and reasonable range.
Li Xinchuang, Party Secretary and Chief Engineer of China Metallurgical Industry Planning and Research Institute and a foreign academician of Russian Academy of Natural Sciences, pointed out that unreasonable pricing mechanism and financial speculation are the main reasons. "The recent surge in iron ore prices is also due to the unreasonable pricing mechanism, which has led to an increase in speculation." Li Xinchuang said.
Automobile production is an industry with great demand for steel. In the upstream and downstream chain of automobile manufacturing, steel is almost everywhere. However, compared with the enthusiasm of the upstream, the performance of automobile retail terminals is cold. Judging from the CPI consumer price index and PPI production price index, 10 and10 are "double deflation" for two consecutive months, indicating that the price increase in the upstream of automobile production has not been transmitted to the downstream of sales, and the difference between them has been digested by the upstream and downstream industrial chains themselves.
The change of price can't be transmitted. In fact, the essence is the weak terminal consumption power. To put it bluntly, ordinary people really don't have money, and people who have some money don't have such a strong desire to consume, especially for such a big object as a car. At the same time, due to the fierce competition in the automobile market, various automobile companies will certainly not raise prices against the market at this time. Of course, OEMs still have considerable bargaining power in the industrial chain. Therefore, the price increase of upstream steel products is actually more digested by suppliers.
For upstream suppliers, it is also fully capable of digesting at present. First, under the background of energy saving and emission reduction and automobile lightweight technology innovation, the steel needed for automobile production is being replaced by aluminum, plastic steel and more new materials; Second, the upstream suppliers themselves still have a certain inventory, which can cope with the drastic changes in the iron ore futures market in the short term. However, with the strong control of the epidemic in China, the economy will pick up next year and the rigid demand for iron ore will be strengthened. It can be predicted that in 20021year, if the price of iron ore continues to rise, it will gradually break the digestion capacity of the upstream supply chain and eventually be transmitted to the terminal sales field of automobiles, which may trigger a chain effect. However, the major iron and steel enterprises in China have taken action and unanimously called on the State Administration of Markets and the China Securities Regulatory Commission to take effective measures, quickly intervene in the investigation and severely crack down on possible violations of laws and regulations according to law.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.