Baosteel announced that the base price of heavy plates

Baosteel announced that the base price of heavy plates increased by 1,000 yuan/ton in June, and the steel-related industries have started a crazy mode, and steel structure manufacturers’ breach of contract will become the norm

As a steel purchaser, I am a little numb to the price increase of steel in the last three months, but Baosteel's announcement on May 10 is still unbelievable.

This rhythm of price adjustments broke through the largest increase in history one by one.

Announcement on March 9: The base price of heavy plates rose by 300 yuan/ton in April;

Announcement on April 10: The base price of heavy plates increased by 500 yuan/ton in May;

Announcement on May 10: The base price of heavy plates rose by RMB 1,000/ton in June and was updated to 300 that night;

Yesterday, Baosteel's steel price increase announcement was another potent medicine, adding fuel to this wave of rising prices.

Judging from the steel price data in the last 15 years, the nearly vertical steel price growth curve in recent months has once again witnessed history. Moreover, the historical high of steel prices will continue, and there is no trend of suspension at present.

Today's financial markets have also responded strongly to Baosteel's steel price increase announcement. The main futures of iron ore, hot coil, and rebar have all daily limit. The current price of raw materials is already significantly higher than that when the downstream manufacturing industry accepts orders. In order to avoid a larger loss, some manufacturers can only choose to charge back orders, break contracts and pay liquidated damages.

It is extremely difficult for terminal consumer products to increase prices significantly. It is impossible to transmit cost pressure through price adjustments. The profitability of some manufacturing companies has been further backlogged. Recently, relevant departments have introduced multiple policies to reduce the pressure caused by rising costs in the manufacturing industry, but this round The price increase of bulk commodities is very strong, and it is difficult to effectively control it in the short term.

For the steel structure industry, the sharp increase in the price of steel and other production materials has led to excessive procurement costs for companies. Most companies have purchased as little steel as possible without affecting the normal production materials, and expect the steel prices to fall behind. Stock up, strong willingness to wait and see;

In addition, as steel prices continue to rise, pressure on downstream steel processing companies is gradually increasing.

As some manufacturing companies have reduced the amount of steel stocks waiting for steel prices to return to rationality, the social plate stocks have begun to slowly rise; with the adjustment of the steel import and export tax rebate policy, the steel market is expected to return to a rational state in the second half of the year, but in the short term It will remain strong.

As of May 7, the social stock of steel was 14.186 million tons, an increase of 14,000 tons from last week, ending eight consecutive declines, down 14.3% month-on-month and 12.8% year-on-year.

Many people in the industry pointed out to the 21st Century Business Herald that the cost of raw materials will not fall sharply in the short term. While bearing the pain of rising costs, the domestic manufacturing industry is also forced to upgrade the industry, eliminate outdated production lines, and produce high added value. Products in response to market crises.

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