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Analysis: China's steel industry will remain cost-run trend

Date:2011-09-22 12:43

China's CPI in July a new high? Continued high CPI will cause rising raw material and labor costs, and ultimately push up manufacturing costs? Experts said the next period of time domestic inflationary pressures are still large? Affected by China's steel industry will remain the high cost of running posture?

Data show that in July, China imported 54.55 million tons of iron ore, the average price of 173.2 US dollars / ton, compared with $ 159.2 in April / ton, up 8.8%? Analysts said the high cost of running the state will support steel prices up, further compressed steel enterprises profit margins, while steel traders will face funding problems?

Specifically, the steel producers will face each production factor price inflation caused by rising production costs brought pressure to further compress the production of steel enterprises profit space? Thus increasing part of the production costs will increase ex-factory price, passed on to steel trade circulation, compressed steel trader profit margins?

Analysts said that as prices increase, the same order quantity, the amount of funds needed to increase steel trader? Highs in the CPI? Countries continue to tighten liquidity situation, part of the steel trade enterprises will have to face a shortage of funds? Most of the steel trade enterprises are small and medium enterprises, in the case of the capital side continued to tighten, companies will face higher financing costs and risks?

TypeInfo: Industry News

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