First, the sudden appreciation of the dollar led to a sharp drop in commodity prices and a drop in iron ore prices.
Previously, after the financial crisis in 2008, the United States introduced QE 1+QE2 (quantitative easing monetary policy 1 and quantitative easing monetary policy 2), that is, the US central bank (Federal Reserve) frantically issued dollars, so the dollar depreciated. Due to the crazy depreciation of the US dollar, the prices of commodities have soared, such as iron ore, copper mine and gold. After 2008, inflation swept the world.
It's 20 1 1 year after QE 1+QE2, and the US monetary policy is in a vacuum. Whether QE3 will be launched is still unknown! As a result, the US dollar has appreciated in recent months, while commodities denominated in US dollars can only plummet and iron ore prices fall.
As a result, steel prices have fallen with the decline of iron ore prices.
Second, the European and American economies are in a downturn. After 20 1 1 year, China's economic growth slowed down.
The economic downturn in Europe and America was caused by the financial crisis in 2008, and it is still in the doldrums.
20 1 1 China's economic slowdown is caused by China's "export-oriented economy" and the economic downturn in Europe and America. Previously, after the European and American financial crisis in 2008, China launched a 4 trillion investment plan in the form of reverse stimulus-because many domestic economists thought that the European and American economies would have a "V-shaped" bottom, so 2008 was actually a downturn in the European and American economies, but China's economy grew at a high speed; But by 20 1 1, the European and American economies had a "W-shaped" bottom, that is, a "double dip", and China's 4 trillion plan in 2008 was withdrawn. Therefore, China's export-oriented economy has been severely hit, that is, China did not wait for the economic recovery in Europe and America.
China's economy would have slowed down in 2008, but because of China's 4 trillion investment plan, China's economic slowdown was postponed to 20 1 1. In other words, the steel price should have fallen in 2008, but it didn't fall until 20 1 1 due to the investment plan of 4 trillion yuan. )
Therefore, the continued economic downturn in Europe and the United States +20 1 1 year, and the slowdown in China's economic growth = led to a sharp drop in steel prices in 201/year.
Note that if the above two reasons are summarized, they can be expressed in one sentence:
The financial crisis in 2008 caused economic downturn and inflation in Europe and America; 20 1 1 The double dip in the world economy led to a slowdown in China's economic growth, so steel prices fell rapidly in the middle of 20 1 1.