As steel prices have broken through a new high since 2008,as of May 18th,the price of low carbon steel is 920USD/TON(6000RMB/TON).Comprehensive analysis of major media for commodities,expecially steel,the price of material is likely to rise to 1095USD-1250USD/TON(7000-8000RMB/TON),is based on the following reason:
1、The Economic Work Conference of the Political Bureau of the Central Committee was hed on Apr 30th(the highest organ of power in China),not a word was said about the rise in commodity prices.
2、At present,China implements very strict enviromental protection policies,resulting in many small and medium-sizes steel mills can not meet the requirements,forced to limit production or even stop production.Most of the steel production capacity is conentrated in the hands of SOE.
3、Deteriorating Sino-Australian relations.Iron ore is very important raw material in steelmaking process,similar to automobile chips,the supply of iron ore to China is mainly，concentrated in AustraliaIndia and Brazil.Now Sino-Australian realations are almost at the lowest level in history,while the epidemic in India and Brazil is still very serious,which also leads to the price of iron ore reaching record highs.
Material prices will certainly continue to rise,when is a turning point,it is difficult to predict,at least in May,it is almost impossible to fall,at the same time,we should also
pay attention to the rising price of non-ferrous metals,which leads to surface treatment,and factories will adjust their prices one day,like ZPHDG.