The U.S. is deeply mired in a steel shortage, and the price of steel has more than doubled
Large-scale price increases in steel mills
On November 25, the domestic steel market generally rose. Ten domestic steel mills raised the ex-factory price of construction steel by RMB 30-80/ton. The average price of 20mm tertiary seismic rebar in 31 major cities across the country was 4,820 yuan/ton, an increase of 27 yuan/ton from the previous trading day. Recently, the production of rebar has rebounded slightly, while both factory warehouses and social warehouses have declined, while apparent consumption has rebounded slightly.
The U.S. is deeply mired in a steel shortage, and domestic steel companies’ profits are increasing like a rocket
Due to the impact of the epidemic in 2020, steel plants in various countries have begun to stop work and production, and production has dropped sharply. After the economic recovery of various countries this year, demand has increased day by day, but steel production has been seriously unable to meet demand, and prices have continued to rise. Since the beginning of this year, the price of steel in the United States has continued to rise, and steel has generally risen by more than 200%.
The United States is mired in a steel shortage. The increase in costs caused by the increase in steel prices directly caused many factories to have difficulties in production and operation, and were unable to survive. Since March of this year, 30,000 factories in the United States have successively suspended work and production, unable to supply goods normally.
Different from the situation in the United States, our country can not only achieve self-sufficiency, but steel-related companies can make a lot of money. On November 19, the Central Bank released a report on the implementation of China’s monetary policy for the third quarter of 2021. It mentioned that the steel industry will soon be included in the national carbon emissions trading market, and carbon emissions will be restricted by quotas, which puts forward higher requirements for low-carbon transformation of enterprises. In order to achieve the goal of carbon neutrality, the iron and steel industry has become the target of key regulations. The reduction in output of the iron and steel industry and the increase in demand for economic recovery have caused the supply of steel to fall short of demand and sharp price increases. my country’s steel industry has been in a state of overcapacity for a long time. Major steel companies are desperately bargaining and involuntary. The industry has a low profit rate. After production cuts and price increases, the profits of the entire industry have increased like a rocket.