The aggressive policy of China in the export of metal rolling has a destructive effect on world steel prices. The proposals for hot-rolled steel at the prices of $ 490 per ton FOB, China reached a three-year minimum after a collapse of prices in the 2009th year. The second source of pressure on global steel prices is called Ukraine, offering hot -rolled steel of $ 500 per ton FOB Port of the Black Sea.
The Chinese metallurgical industry is faced with the problem of steel overproduction and offers excess metal rolling at low prices, while steel plants in Ukraine and the CIS are forced to reduce prices under the pressure of Chinese exports.
The falling prices for iron ore and coking coal supports a decrease in steel prices and today there is only one question on the market: to what level will prices fall?
Hypothetically, taking into account the forecasts of falling prices for iron ore up to $ 100 per ton, and coal to $ 120, it can be assumed that the price of hot -rolled steel can reach China $ 440 per ton of FOB. In addition, almost all CIS metallurgical companies have their own raw material base and therefore are able to even reduce the prices of metal products even more.
These calculations show how high the probability of further falling of world prices for steel is.
Chinese export presses on world prices for steel
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Azovpromstal® 30 May 2013 г. 09:47 |
