As market data shows, on Monday, March 29, 2021, Chinese steel futures on SHFE in Shanghai, for example, rebar and hot-rolled-coil increased by more than 3%. Rising demand and attractive market conditions have affected prices accordingly.
Steel prices rise for five main products
Hot-rolled coil prices were around 3 % and construction rebar at about 2.5% higher in Shanghai at 19:19 on Sept. 29, 2021.
Thus, the prices of five main steel products increased by about 5.5% from week to week, available data show.
Profits at Chinese industrial companies on the rise
China’s largest industrial companies just reported that their profits increased by as much as 179% in the first two months of 2021. Data from the National Bureau of Statistics shows that.
Margins in raw materials and processing rise significantly
Manufacturing profit margins increased 219.5% year-on-year, while iron smelting and processing profits rose 271% in the January-February period, according to the statistics bureau.
Profit margins in the raw material production sector rose 346% year-on-year as mill prices rose at the fastest pace in about two years.
Chinese iron ore futures market
The most traded DCE 2105 iron ore contract closed the week at Yuan 1,088.5/mt, up 4.5% from the previous week.
Iron ore prices may still have room to move higher this week as the ongoing recovery in end-user demand will benefit steel prices.
Read also:
- Middle East: Is the stainless steel shortage now also coming here?
- Production reductions: Operating rates of Chinese blast furnaces continue to fall (now at 85%)
- China’s HRC stocks fell further in the week ended March 25
Source: gerber-steel.com
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