Price Trends of Iron & Steel Industry in China Recently

In 2020, Chinese Iron & Steel market has been rising slowly, but  last weekend, the market price has been rising quickly. 

To be honest, as a supplier, we are even getting afraid of sending quotation to our foreign clients.

What is the reason? After reading below article, maybe you could understand.

--1. Materials increased 180 RMB  November 1- 30, but increased 230 RMB  Dec 2- 7( just 7 days ) totally is 410RMB =$63/T. 

       This mainly due to the Iron ore prices rise the Plates price for 62% increased  $119.05/T to 145.30/T almost 22%;

--2. The shipping freight increasing:  

       Shipping company raising prices deliberately (click this link for further detailes: Sea freight going crazily recently)

       For example, Qingdao, China --Jakarta, Indonesia, the price was $200/ 20 GP (last year),  now up to $2000/ 20 GP.

       We used $8/T to calculate the freight, now we have to use $80/T, this part is $72/T;

--3. The USD Exchange rate have down  $1=RMB 6.8002 (in Sep.) TO $1=RMB 6.50 (in Nov.) 

What risks we still need to face are:

--1. Freight maybe keep increasing befofre COVID-19 under control  till vaccine licensed  post marketing.

--2. Some bank analyst in China   abroad such like JP Morgan predicated that USD rate maybe down to US$6.30  lower...

Winter is coming, how will Chinese Iron & Steel market be? Let's wait  see.

But we must keep hope in our heart, like Shelley saying: When winter comes, can spring be far behind?