In the past six months, under the continued global monetary easing, the prices of copper, aluminum, steel, plastics and other commodities have continued to rise, and many have reached historical and stage highs. The latest "black whirlwind" was brought by steel.The iron and steel industry is one of the country's important raw material industries. Real estate, automobiles, home appliances, machinery, and shipbuilding are all important downstream industries in the iron and steel industry. The soaring price of steel has severely impacted downstream companies.
The rising price of the black series has accelerated since October last year, and has rapidly risen after the May Day holiday. From May 10, the steel market has entered a state of excitement, and the price of steel has accelerated, breaking through the previous high in 2008 and hitting a record. A new high in history. "In the past years, steel prices are usually relatively stable after the Chinese new year holiday. I didn't expect this year to rise so fiercely.Like the stainless steel we use, it has risen by 30% in half a month." said a person in charge of a foundry company in Shandong. Before Chinese new year, he thought about hoarding some raw materials, but it was just a matter of thought. When he placed an order after holiday, the price had already skyrocketed. "For a while, each day price get higher. Thinking about it now, I regret not having stocked up some raw materials.
China’s manufacturers endure ‘difficult time’ as surging raw material prices drive up costs.
- Demand for raw materials has surged in China as the economy has recovered from the pandemic, but that has increased costs for downstream manufacturers
- While big industrial companies have seen profits grow this year, soaring prices for commodities like iron ore are starting to put pressure on smaller firms
