European and American Debt Crisis Affects Price of Iron Ore Even Rising

After import iron ore briefly went down in June, imports of iron ore rebounded again in July, reaching 54.55 million tons, up 7% from the same period of last year. At the same time, the price of the iron ore has reached a record high. Imported iron The average ore price level reached US$173.2/ton, and domestic iron ore imports showed a trend of increasing prices. The author believes that with the steel market off-season is about to leave the city, the season is quietly coming, steel demand is expected to heavy volume, the latter will continue to increase the amount of iron ore prices.

Iron ore imports once again in heavy silence a month later, the new record, in addition to domestic upcoming peak season for inventory, rumors that India's mineral resources are also supporting the tension in the outer disk iron ore prices. At the same time, last week's US debt rating was downgraded to AA, and the devaluation of the US dollar in the international market will become the norm, putting the global inflation situation to a greater challenge. Iron ore, which is the basic industrial raw material, is affected by this, and the pressure of price increase is further manifested.

According to the report of China Steel Spot Market, iron ore price rose by 2.2% last week and it has risen slightly for 5 consecutive weeks, accumulating 8.4% from the beginning of July. The external steel demand of domestic steel enterprises is already strong. In addition, the report also pointed out that this The price of imported iron ore continued to climb in the week, and the market price remained high. The upward trend will continue to be maintained due to the shortage of low-grade ore reserves at domestic ports, and domestic steel price support will be strengthened.

It is understood that due to the debt crisis in Europe and the United States, since the domestic steel market in the past week, a wave of short-term downward curve has emerged in the stock market crash, the market began to stabilize in the middle of this week, the business mentality gradually restored, to a large extent It is supported by the high strength of iron ore, steel billets and other raw materials. However, the merchants all stated that although the steel market is approaching the off-season, the market turnover is already sluggish, and the middlemen are also subject to stocks, and the hawkers are afraid to rush into the market. The market is in a tacit understanding, the overall stability, and some high-level fluctuations in adjustment operations, waiting for the introduction of domestic mainstream steel prices.

Some analysts said that the depreciation of the US dollar and the continued rise in the price of imported iron ore, the steel mill's September price policy to be introduced in the near future will consider more cost factors and downstream order factors. In the still-struggling market, the steel market needs The upcoming peak season is also full of uncertainties; based on this, the mainstream steelmakers will be in the late stage of the stage of the market or will be called the mainstream, but taking into account the stability of the market, steel mills should try to focus on the market as much as possible.

In general, the current continuous tight funding form, coupled with the extreme instability of the external disk, while the overall tight supply pattern of the three major iron ore mines remains the same, the current ore demand is still strong, the future ore price There is also a certain amount of room for growth. It is difficult to see a decent fall before the end of the year, and domestic steel prices will continue to be high at high cost.