Steel pipe price

Iron and steel industry is the basic industry of the national economy, which is the national economic level and an important indicator of overall national strength, the steel industry directly affects the development of the defense industry and its associated buildings, machinery, shipbuilding, automobiles, home appliances and other industries. However, to some extent, steel pipe price will also affect the mobilization of relevant industries a price volatility.

Steel pipe prices continue to fluctuate with cyclical. This fluctuation in steel prices steel industry a comprehensive reflection of the market cycle, which reflects the price of an investment in a capacity benefit a relationship between a supply chain role. Overall, the impact of steel pipe price change exist main factors: first, the cost of production of steel, which is steel price changes affect the fundamental factors; Second, supply and demand, changes in steel prices is affecting the key factor; Third, the market system, if the steel market is flawed market system, the steel market supply and demand imbalance may lead to amplification, resulting in fluctuations in steel prices.
The main cost of steel products includes the following parts: the first is of iron ore. Iron ore is the most important raw steel production, China's iron ore resources are insufficient and unevenly distributed, has proven iron ore reserves in the amount available limited, and low grade, poor mining conditions. In a buyer's market dominated by international iron ore market, iron ore giant control of their pricing power, therefore, mine ore prices and import prices will affect the price of steel. The second is coking coal. Coking coal resources is also an important raw material for steel companies, a steady supply of coking coal, iron and steel enterprises is a necessary condition for normal production. The third is scrap. Scrap is an important raw material for steel production, including iron and steel enterprises in the production process of production scrap, industrial and mining production scrap generated during processing and social production and life, defense and other waste materials, depreciation of steel scrap. The fourth is the sea freight. China needs to import large quantities of iron ore by sea, China's imports of iron ore accounted for 46% of world iron ore production, which imports 50 percent of iron ore to rely on shipping, but the shipping capacity of the world's total iron ore 4%. Shipping capacity on the passive situation of China's steel enterprises so that there is no pricing power in the shipping costs.
In addition, for the steel pipe price, when the market reached a number above saturation of oversupply, when compared to the manufacturers, steel not ideal price to sell, in order to achieve sales and reduce inventory, raw manufacturers have even steel prices will reduce the sale. So for the manufacturers, the impact factor is the market price of steel pipe above the number.