The biggest factor that drives the iron and steel markets is undoubtedly the supply-demand balance. In addition, a second factor is raw material prices. To briefly and briefly evaluate the developments:
Fall in input costs: Why have prices dropped sharply on a low production floor? According to the Lange Steel Research Center, this was mainly due to the reduction in input costs.
Wang Guoqing, director of Lange Steel Research Center, said in a speech that there were serious declines in raw material prices, which reduced steel costs.
For example, he discussed that ore prices have weakened by $14 and coke has weakened by $31 in the last week, and this figure is serious.
China: Steel exports down nearly 9% month on month in Oct'21
Decreased demand: Another reason is the weakening of steel demand. With the recovery of the global manufacturing industry, China's industrial exports have weakened and the demand for flat products has decreased. Demand for rebar is closely related to the real estate market. New construction continued to decline. Growth in new projects has been negative for more than three months, weakening demand for construction steel.
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