Increasing raw material costs & low steel demands make China's steel prices fluctuate
9 Aug 2022 15:16 reported by Jamie Yen
Last week, some data showed that China's raw material market had sharp fluctuations. The prices of steel products had rebounded.
The external environment was complex. The global economic growth slowed down obviously, and inflation continued to rise. The domestic economy in China was still facing many challenges. The demand had not yet recovered, and the profitability of various industries had declined. Also, inflation kept continuing. Those reasons made business operations still difficult.
In terms of supply, due to the previous sharp drop in the raw materials costs, the profits of some finished products had improved, which strengthened the resumption of production.
From the demand side, the transactions had gradually declined. The price of iron ore and scrap had risen again, which had thus influenced the willingness to purchase.
In the short term, even if the positive resumption of production, the release of downstream demand was still low, and raw materials costs might increase. China's steel market will still fluctuate.
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