China's steel prices fluctuate in big range in May
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Update time : 2021-05-25 21:07:20
China's steel prices changed a lot in May, which soared and even broke the highest record in 2008 and then plummeted after mid-May.
The main reasons are classified as below:
First, under the influence of the epidemic, the world's major economies have implemented quantitative easing (QE). Some international financial institutions used the commodity futures market for short-term speculation, which led to a surge in steel prices in the short term.
The second was that the global economy has recovered this year, and the demand for steel has returned to normal levels. The third reason was that the price difference between domestic and foreign was big, which drove steel prices. The fourth was the Chinese government's carbon neutrality goal policy affected market expectation in supply. The last was higher and higher costs of raw materials.
In this rising and falling steel prices situation, many companies are facing losses, and many are worried that consumers will eventually have to pay for the uncertainty in steel prices.
In the long term, the supply structure from both domestic and foreign markets still needed to be optimized.
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