A new round of rising steel prices open screw prices affected

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Recently, the three quarters of high consumption so that the gray black whole industry chain prices continue to rise. In the first quarter of last year, China's steel consumption decreased by 12%, but gradually from the second quarter, the consumption greatly increased to 15%, the growth rate increased to 20% in the third quarter, and the fourth quarter will still maintain a growth rate of more than 15%. The key to strong consumption is still the "flood irrigation" around the world after the COVID-19 epidemic, which leads to strong regeneration of economic development. It is estimated that China's engineering and construction project investment industry will be strong regeneration, and the processing and manufacturing industry will also be strong in an all-round way in the third quarter of 2020, generating the practical effect of driving the twin engines. In the fourth quarter of last year, foreign consumption picked up gradually and rapidly, further boosting the world's steel consumption. Steel consumption troika have strength steel and high consumption of external economy mainly: China's real estate industry super forecast growth, government departments, the core of super keep infrastructure investment, after the outbreak of the new champions league foreign economic recovery of inward and outward growth, promote strong regeneration, the manufacturing industry in screw fasteners, electrical and electronic toys industry demand. The steel consumption troika made concerted efforts. The rapid growth of construction machinery and equipment for more than half a year fully proves the high popularity of China's engineering and construction themed activities. Excavator sales growth rate has maintained a high growth rate of more than 50%, real estate sales area has maintained a high growth rate of more than 10%, screw fasteners have also maintained a 10% growth rate.

In addition, some economic data also reflected the sentiment on the value of the economy in our country, such as high power consumption remained above 8%, the second industry machinery manufacturing power consumption to keep growth above 15%, vehicle supply, keep growth above 10%, the inward and outward, household electrical appliances again to keep 15% of high growth, screw fastener industry also keep 10% of high-speed growth. Looking back at foreign countries, whether in Europe and the United States where the epidemic is relatively severe or in East Asia where the epidemic is relatively mild, PMI index values have hit new highs. Wo futures that in the whole process of economic recovery, the world's steel consumption continues to rise. In addition, since the fourth quarter of last year, the transportation capacity of the whole country is anxious, the daily consumption of coking coal is growing rapidly, the shipping container is difficult to find, and the CCFI index value is soaring. All these indicate that the theme activities of the world economy are accelerating to regenerate. In November last year, the growth rate of foreign crude steel consumption was positive for the first time in a year. The consumption growth rate had already reduced by 30% in the early stage of the epidemic to a positive growth rate in November.

In November, the growth rate of world crude steel consumption reached 8.3%, setting a new record of monthly summary growth rate since 2017. Because of the rapid recovery of foreign consumption, and the increase of foreign steel prices significantly more than that of China, net steel exports have gradually returned to China since October last year. In September last year, China's net imports of steel billets amounted to 1.8 million tons, and net exports amounted to 1 million tons in November. It is estimated that from January 2021 gradually, the net export of steel billet in China will be above 2 million tons, thus greatly reducing the pressure on China to provide jobs. As a result of the rapid repair of the foreign steel smelter sector, foreign cast iron production leveled off in November last year for the first time in a year. Monthly foreign cast iron production increased by 10 million tons compared with April, equating to an expansion of 16 million tons of copper consumption, 4 million tons of coke consumption, and 5.6 million tons of coal consumption. This has prompted growing anxiety about the steel raw materials available in China, the growth rate of copper imports has slowed down, the import and export orders of coke have occurred, and the international coking coal price index has soared. Looking back to December last year, steel prices experienced a rapid rise and fall in the market. Under the condition of low inventory, steel prices rose and fell in the first half of December because of the ductility and rigidity of China's steel consumption and the concentration of foreign replenishment requirements. However, a moderate reduction in profits, smoothly through the winter, the reduction of profitability is the subject of steel enterprises will not change, so in December in the middle of the steel prices down, immediately fell into the cost area. Raw material supply anxiety will continue in general, last December three steel raw materials to maintain a stable price layout. Coke is still 10 days as a cycle time to carry out the price increase, port spot trading increased by 350 yuan/ton; The import of evaporated hard coal increased by 18 dollars/ton; The copper mine index added $44 a tonne. The cost of steel products continues to rise under the circumstance that the prices of the three major raw materials rise together, and the total monthly increase is 420 yuan/ton. Calculate by the market price, the thread steel into the warehouse cash cost has been pushed up to 4200-4300 yuan/ton. For the three big steel raw materials, the whole winter will be very difficult.

As iron-smelting blast furnaces come on line around the world, the shortcoming of copper's supply end is becoming more pronounced. Looking at the whole year of 2021, the supply vacancy is very large. Coke sales market, the supply closed significantly, the new production capacity must be completed and put into production, and consumption continues to increase, the supply gap in the short term is still unable to make up, especially the company has to deal with the financial difficulties before the Spring Festival. Coal and carbon imports from the two sources of resources continue to be unable to fill, China's supply can not increase in volume. In general, raw material supply anxiety will continue, which will further push up the rise of screw raw materials. Hongsheng screw Xiaobian think, into January 2021, along with the winter storage, warehouse construction requirements are gradually running, coupled with foreign requirements are still rising, a new round of steel prices. From the analysis of the cost end, the cost of raw materials will further push up the cost of steel prices, screws under the pressure of rising steel raw materials, the price of screws will inevitably rise.

Hongsheng bolt specializing in the production of screw fasteners, the production of all kinds of carbon steel, copper, aluminum, stainless steel screws. Now under the pressure of rising steel raw materials, with a large inventory of stainless steel screws, carbon steel screws, now to buy is to earn, do not disrelishing the price is expensive, today's high price is tomorrow's low.