2018 World Steel Price Growth is Flat

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1 3 - 2018 World Steel Price Growth is Flat

Iron and steel industry is significant for national economy, which is a symbol of a country’s economy level and comprehensive strength. Annual reports observed that global steel and iron market’s annual revenue growth is flat. The decrease of profits in recent years has made the industry compete more fiercely.

Raw materials for the steel industry

Iron ore recycled steel (scrap steel) and carbon coke are the primary raw materials of the industry. Besides, manganese ore, limestone, dolomite, fluorite, silica and refractory materials are needed as the auxiliary materials. In normal conditions, 1.6 tons of iron ore and 450kgs of coke can only manufacture a ton of pig iron.

Iron is regarded as the common mineral and the gross reserves of iron ore are about 350 billion tons. According to Steelmaking raw materials report we can see that “ most iron ore is extracted in opencast mines in Australia and Brazil, carried to dedicated ports by rail, and then shipped to steel plants in Asia and Europe.”

Major problems in steelmaking materials supply chains

With the trade protectionism rose, Iron and steel export situation is becoming more and more difficult; Raw materials supply-chain is limited by adverse weather conditions, accidents and location of ports; In addition to this, the deterioration of raw materials quality has also put pressure on it.

Experts said that cross-border e-commerce platform is probably  the best way to solve the problem, and make the resources get the maximum utilization.

Steel price trend

Price trend is influenced by market supply and demand of steel. China’s reduced production and global increased demand will cause a higher steel price.

As forecasted by the World Steel Association: world steel demand will grow by 0.4 percent and the steel demand in the US will increase by 5.9 percent.

 

 

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