Under the influence of global inflation and currency over-issue, the price of domestic steel has skyrocketed recently, and the prices of various metal raw materials, such as copper, iron ore, stainless steel, zinc alloy and other bulk raw materials have also risen sharply, with a cumulative increase of more than 20%. %, causing the entire downstream manufacturing industry to increase prices across the board! Fasteners are no exception!

The shocks in steel prices are roughly due to the following four reasons:

(1) The price of raw materials has risen, the production cost of steel mills is high, and the iron ore required by my country is more than 80% dependent on foreign countries. The mismatch of resources on a global scale has driven up the prices of raw materials, and the rise in the prices of raw materials such as ore and coke has also pushed The production cost of the steel mill is increased. When the production cost of the steel mill increases, only by constantly adjusting the price can it protect its own cost, and the steel mill’s intention to increase the subsequent increase is still strong, and the fasteners have become a trend.

(2) Due to the epidemic and policy reasons, the supply of steel has been reduced. Due to the epidemic last year, steel mills have cut production across the board. Coupled with the promotion of policies, the supply of steel will shrink to a certain extent. The rise in volume and price of steel products has also driven the hot steel trade market. Some steel trade companies have doubled their orders, and the transaction throughput of some steel trade markets has even reached an all-time high.

(3) The demand side of steel is relatively stable. The basic stability of the steel market has been maintained. In addition, the prosperity of the manufacturing industry is relatively high, and the economic recovery momentum in the post-epidemic era is still there, boosting the marginal demand for steel. In addition, domestic new infrastructure is in full swing, supporting the increase in demand for fasteners.

Data from the National Bureau of Statistics

(4) Environmental protection pressure in coal production areas, limited steel supply This year, the National Two Sessions, for the first time, included "carbon peaking" and "carbon neutrality" in the government work report. As a national development strategy, the national level and industry level will pay more attention The higher the future, the iron and steel industry, as the industry with the largest carbon emission in the manufacturing industry, will definitely take strong measures. The supply side will continue to limit production and reduce pressure to achieve production capacity replacement around the relevant policies of "carbon peaking" and "carbon neutrality".

According to MYSTEEL data statistics: On August 4, the domestic steel market mainly rose, and the ex-factory price of Tangshan billet was stable at 5,100 yuan/ton.

On the 4th, 8 steel mills across the country lowered the ex-factory price of construction steel by 20-50 yuan/ton, and 3 companies raised the ex-factory price by 30-50 yuan/ton.

At present, it is expected that the steel market in August will still have room for upside. The short-term fundamentals of supply and demand are biased, and the price of steel may be on the strong side. It is also necessary to guard against the risk of policy regulation caused by excessive rise. Fastener manufacturers in the downstream may also face the problem of strong price fluctuations of steel raw materials.