The spot price of the hottest iron ore kept rising

2022-07-22
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The spot price of iron ore keeps rising, hitting new highs in the year.

the spot price of iron ore does not (1) adopt sticky soft rubber on the surface in contact with the sample; On December 23, the reference price of CIF futures for 63.5% of Indian fine ore in Tianjin Port has reached US $115 to US $117 per ton, almost double the lowest point of US $59.1 per ton this year. Insiders believe that the sharp rise in spot price of iron ore still has a large market space for the development of extruder industry, which will not only further squeeze the profit space of steel mills

on December 23, the reference price of CIF futures for 63.5% of Indian fine ore in Tianjin Port has reached US $115 to US $117 per ton, almost double the lowest US $59.1 per ton this year

insiders believe that the sharp rise in the spot price of iron ore will not only further squeeze the profit space of the steel plant, but also affect the long-term agreed price of iron ore next year, making the mine in a more favorable position in the game with the steel plant

insiders believe that there are many reasons for the rise in spot iron ore prices

first, the pull of market demand. Since the end of last year, China has issued a series of economic stimulus policies, and large-scale investment in railway, highway and infrastructure construction has enabled China's steel production this year not to decline because of the crisis, but to rise against the trend. According to the statistics of the National Bureau of statistics, China's crude steel output reached 5. 5% in January this year The three-dimensional rendering of a new bone repair composite developed by the University of Connecticut was 1.8 billion tons, an increase of 12.1% year-on-year. After the fourth quarter of this year, with the stabilization and recovery of the global economic situation, the crude steel output of other major steel producing countries outside China is also recovering rapidly. In November, the crude steel output of the United States, Germany, Japan, South Korea and other countries changed from negative year-on-year growth to positive year-on-year growth. As the market supply-demand relationship tilts to the seller, the spot price of iron ore also rises

second, the impact of exchange rate factors. Since the beginning of this year, the US dollar index has been declining. The world's mining giants need to raise prices to make up for exchange rate losses, resulting in the rising price of iron ore denominated in US dollars

in addition, the rise in steel prices in turn stimulated the rise in iron ore prices. On December 10, Baosteel Co., Ltd. announced the prices of some products in January next year. The prices of most varieties were increased by 300 yuan to 600 yuan per ton. After that, other steel mills such as WISCO also raised prices one after another. The increase of ex factory prices by steel mills such as Baosteel is obviously a great benefit to the iron ore market, and iron ore traders quickly increase their quotations

insiders believe that the rise in spot iron ore prices will greatly affect domestic small and medium-sized steel mills. Imagine 1. Since small and medium-sized steel mills often cannot buy long-term agreement ore, the price rise of spot iron ore will significantly increase their steelmaking costs. However, the reality of a large amount of excess domestic steel production capacity makes it difficult for small and medium-sized steel mills to transfer costs through substantial price increases

it is not only spot mine suppliers in India and other places that benefit from the rise in spot prices. In fact, due to the sharp rise in spot prices, the balance of the game is shifting to mining giants such as Rio Tinto, BHP Billiton and vale of Brazil in the long-term agreement price negotiation of iron ore in 2010

recently, JPMorgan Chase and other major investment banks have raised their forecasts for the long-term agreement price of iron ore in 2010. Roge Agnelli, President of vale of Brazil, said publicly not long ago that due to the recovery of demand, the industry has reached a consensus on the rise of iron ore prices next year, and it is expected that the rise will reach 10-20%

Baosteel Co., Ltd. issued a statement on the 21st that, from a global perspective, the profitability of steel enterprises does not support the price rise of iron ore next year. Under the situation that the overall capacity utilization rate of the global steel industry has dropped significantly, the steel price has fallen, and the major steel enterprises are on the edge of loss, the room for price increase of iron ore will be restricted

qixiangdong, Deputy Secretary General of China Iron and Steel Industry Association, also said recently that we are opposed to sharp fluctuations in prices, including steel, coal, iron ore and sea freight prices, which cause losses to both supply and demand sides and disrupt the normal market order

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