Globally, with the development of the world economy, the demand for steel products is increasing. From a country's perspective, the development of steel industry is also positively related to the country's economic development. The speed of economic growth directly affects the social demand for steel consumption, thus affecting steel prices. It can be said that the development of the steel industry is obviously affected by the economic cycle. When the national economy is in a period of rapid growth, the steel market demand is strong and the price rises. When the national economy enters a period of adjustment, steel prices will also fall.

(2) Cost status

At present, two-thirds of the world's steel production and most of China's steel production are based on iron ore. Therefore, the change of iron ore price is the key factor affecting the production cost of steel products. At the same time, the energy consumption of water, electricity, gas, steel and goods transportation in the production and operation of the steel industry also constitutes the operating cost and profitability of the steel industry.

(3) technical level

Technical level is one of the important factors affecting steel prices. The influence of technological progress on steel price mainly comes from three aspects: first, the influence on production technology, and then the influence on production cost; Second, technological progress leads to the emergence of steel substitutes, thus reducing the demand for steel; Third, technological progress leads to the substitution of steel products for other materials, thus increasing the demand for steel.

(4) Supply and demand situation and expectation

The market price of any commodity is closely related to the relationship between supply and demand, and steel products are no exception. Therefore, investors should pay close attention to the supply and demand of steel and analyze the price trend of steel.

(5) International steel price trend

Domestic steel prices are inextricably linked with the international market. Paying attention to the price changes in the international steel spot market and the steel prices announced by the relevant exchanges that have launched steel futures trading is conducive to grasping the trend of steel prices in China.