Long-term work in the steel market, hot rolled coil is no stranger to you. So what are the main factors affecting
the price of hot rolled coil?
The supply and demand relationship of the hot rolled coil market determines the price trend: the value determines the price, and the supply and demand affect the price. Before 2008, it was the domestic hot-rolled steel plate that required a boom. At that time, the hot-rolled coils required high production technology. At that time, hot rolled coils were produced in a small number of production lines of a few
large steel mills, and the market supply was far less than the demand. Therefore, the market price of hot rolled coils during that period was generally higher than other types of steel.
There is also the cost of upstream and downstream to control the price level, supply and demand determine the price trend, and the cost determines the upper and lower limits of steel prices. The cost of the downstream industry determines the upper limit of the price of hot rolled coil. When the cost of the downstream industry has been unable to withstand the rise in the price of hot rolled coil, the market price tends to fall from rising to falling; the average production cost of the hot rolled coil industry determines the lower limit of the hot rolled coil. When
hot-rolled coil manufacturers generally suffer losses, there is little room for the price of hot-rolled coils to continue to fall.
Then there is the impact of the ex-factory price of large hot rolled coil manufacturers. The steel plate market not only pays attention to the price policy of hot rolled coils of the leading local steel mills, but also pays attention to the adjustment policy of the ex-factory price of large steel mills. For example, in addition to paying attention to the local Shagang, the steel traders in East China will also care about the ex-factory price adjustment policies of Baosteel and Anshan Iron and Steel Co., Ltd., especially the adjustment of Baosteel's price policy to other steel mills and markets.
Finally, the market expects an impact on the price of hot rolled coil. The expected change in the market is the price of hot rolled coils affected by changing supply and demand relationships and market capitalization. If the hot-rolled coil market is expected to show an upward trend in the future, traders and downstream companies will consider large-volume purchases or stocks, further stimulating the price increase in
the hot-rolled coil market.
Do you know the four factors that affect the price of hot rolled coil? Henan AHL STEEL Company will bring you more knowledge of the steel plate industry.
