In the last two weeks, steel and iron ore market price at the same time a rapid decline. According to the Chinese iron ore spot trading platform for transaction data, the transaction on July 11, Australian iron ore (PB powder) price is still $ 136 / dry ton; August 1, of similar quality 62% of Australian iron ore fines transactions prices have fallen to $ 118 / dry ton. Steel side, typical hot-rolled coil prices in Shanghai, for example, its price from the end of June of 4240 yuan / ton, down to the end of July 3870 yuan / ton, a decline of 8.7 percent. As of July 30, the iron ore market prices have stabilized, but steel prices are still falling.
Prices, inventory impairment led to a significant increase in traders and steel mills loss, the performance of direct ore traders have been hit. Manager of a private enterprise Trade Company China Metallurgical News "reporter, said," Now we the hands of the inventory loss, not the same species, but at least per ton loss of 100 yuan. These days ore price has been stable, and some trade Chamber of Commerce took the opportunity to lose money shipping, However, traders have not yet out. "This reporter has learned that the major domestic ore stock traders are about 1 million tons to 200 tons, individual stock traders, up to 4 million tons to 500 tons. According to informed sources, some traders holding last year's high-priced inventory, such as cost 202 U.S. dollars / tons of Brazilian ore, $ 180 / ton Australian iron ore.
Analysts believe that the relative abundance of capital, the large traders in the market prices are generally not eager to ship, but hopes to market to pick up, unless the market price to drop sharply to the point of unbearable. The statistics show that as of July 27, the country's 30 major ports in the total inventory of iron ore was 97.74 million tons, slightly down, market participants interpreted as a drop of 98 million tons mark, but still close to 100 million tons. But one trader said, CVRD market goods "more violent", the price had dropped.
"The recent situation how?" "Oh, a little ore inventory." Recently, the steel mills between this dialogue I am afraid very common. Steel and ore prices fell at the same time, a direct result of the consumption of high-priced inventory of raw materials to produce steel in huge losses. According to research, almost all the steel mills in Tangshan region have suffered serious losses, some small steel plant losses as high as 150 yuan / ton to 200 yuan / ton. Tangshan area, small and medium-sized enterprises, in particular, gradually began to cut the tune billet rolled from last week. According to statistics, in early August, compared to early July, the blast furnace overhaul of the Tangshan area, an increase of 11, a total of approximately 4000 m3. The overhaul is no way, if you continue to produce, inventory piled sell, nor to make money. Many steel mills are now in production. "A private company executives said, sighing. The reporter saw another statistics show that 163 steel mills in early August, 45 existence of the overhaul, overhaul blast furnace 58, the total volume of 41,015 cubic meters, the impact of daily hot metal production of 104,800 tons.
According to an authoritative introduction, many domestic steel orders in August poor, "is almost hard to arrange a normal production. The use of imported high-priced ore directly pushed up steel prices, production costs, and business matters worse for the production of steel prices. Some industry insiders pursuant to remind the iron and steel enterprises should be an accurate grasp of the purchase price, the opportunity to focus on cost control, reducing the losses that may result because of the use of high-priced ore.
The trend of the iron ore market outlook, an executive at Shagang on a wave of iron ore prices have fallen mainly to follow the price of steel fell from the steel industry gradually began to cut, weakening demand for iron ore, The relationship between supply and demand will drive the further decline in ore prices. Indeed, since the beginning of this year, China's domestic mineral and iron ore import volume growth is always higher than the growth rate of crude steel production. The data show that China imported iron ore in the first half of 366 million tons, an increase of 9.58%; China's iron ore production reached 600 million tons, an increase of 16.7%. By comparison, China's crude steel production of 357 million tons, increased by only 1.8%. Ore supply growth is much faster than the growth in demand, but the ore prices are high. According to the China Iron and Steel Association data monitoring data, the first half of the imported iron ore prices once from the end of last year, $ 136.3 / t, rose in mid-May to 152.9 U.S. dollars / ton, the July average CIF value of imported iron ore is still $ 138.15 / ton.
Insiders said that the process of price fluctuations in iron ore prices rose faster addition than steel prices fall slower than the steel prices and less, has been the erosion of profits of steel mills. The consequences, the first half of the Member iron and steel enterprises realized a total profit of only 2.385 billion yuan, up by a substantial decrease of 54.549 billion yuan, a decrease of 95.81%; loss of enterprises reached 14.248 billion yuan, the loss of 33.75%; sales profit rate of 3.06% in the same period last year, down only 0.13%.
Iron and steel enterprises losses production arrangement weaker, suggesting the future facing pressure on iron ore prices will continue to increase. In the interview, the reporter of "China Metallurgical News" to all mention the same problem: the iron ore prices could fall much money? "Most people have expressed a similar view that the imported ore probably fell to 100 U.S. dollars / ton. But also suggested that high-cost domestic mines will support ore prices are relatively high. A rebuttal, U.S. research firm World Steel Dynamics in the detailed analysis (taking into account quality adjustments to the factory freight adjustment factors) pointed out that even the 2012 iron ore price drop to $ 105 / t level, China still has the capacity to supply 470 million tons of iron concentrate.
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