The global iron market as a whole is in a downturn, domestic iron ore prices, however in such circumstances "contrarian" higher. According to the latest data show that a metal mesh, after several weeks of rising prices, the current market price at a high level, 26, 63.5% Indian iron ore prices reached $ 198 / t level.
Increase investment in the protection of housing construction in China will boost demand for steel, iron ore demand will increase accordingly. The same time, many large-scale iron ore projects in the investment to build into, the real production also takes a long time, unable to supply increased significantly in the short term.
This also means that short-term supply of iron ore tight situation difficult to reverse. Currently, three major mining companies iron ore monopoly position does not change, the performance is still very strong iron ore prices, does not exclude the three major mining companies intend to control the delivery, in order to raise prices.
Global iron ore prices or impact to the downstream industry
Li Xuerong that has been, the domestic steel and ore price showing each other to push up the situation. Iron ore prices may increase ore price rise is expected to buck the trend in iron ore prices continued to rise, will push the prices of steel products. Steel industry and other industries associated high, widely used products, the impact on national economy.
The first is the automotive industry, the first half of the automotive industry growth fallen very sharply, well below the increase in the same period last year. Continuation of gasoline and other automotive high fuel prices in parts of the purchase order to curb some of the demand, steel prices will increase automobile manufacturers and distribution business costs, automobile production and sales in the second half may be a negative growth.
The machinery industry is the steel's second-largest industry, the boom of the first quarter of this year, the machinery industry remain high, the economy has dropped for the second quarter, part of the product sales have fallen sharply. Steel prices remain high and will increase the cost pressures of the machinery industry, increase the risk of business operations, the impact of the machinery industry in the second half of the boom rebound.
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