Demand-driven cost pressure

     Rising raw material and fuel prices, increasing cost pressures that steel production, steel prices high-cost short-term trend is difficult to change, and the current market demand remains relatively strong, so the industry is widely expected that steel prices will continue to maintain the future of upward shocks situation.

      Data show that in July, China imported 54.55 million tons of iron ore is priced at 173.2 U.S. dollars / ton, compared with April’s $ 159.2 / ton, up 8.8%. At the same time, iron ore spot prices high consolidation, Tianjin Port 63.5% Indian iron ore in the 1300-1350 yuan / ton floating. China Steel Association believes that China’s urbanization and industrialization accelerate the development, accelerated economic restructuring, post-boost economic growth remains strong, the market was still strong demand for steel bars. Among them, the security room, a large-scale water conservancy construction, railway construction investment is also large, greater demand for steel used in construction; shipbuilding, automobile, engineering machinery industry growth slowed, plate and strip products will be more competition in the homogenization intense.

       In addition to iron ore, the July purchase of industrial producer prices rose 11.0%, an increase of 0.5 percentage points last month. Including fuel and power prices rose 12.6% the previous month increased by 0.6 percentage points. As the steel industry has been in high-cost operating state, the sharp drop in steel prices is limited.
       On Hing Industrial Co., Ltd. has a strong technology and advanced equipment, production ERW Steel pipe, H BEAM IPE IPEAA, in order to meet any requirements for the production goal, we have been qualified supply Europe and the United States markets. With perfect ISO9002: 2000 quality assurance system and local sincere service, we hope that with more friendship and cooperation from domestic and foreign customers.


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