It is understood that the current capacity utilization rate of American steel mills is only 75%, far lower than the level of 82% in February last year. Overall steel shipments have increased, but also lower than the same period last year, and steel inventories are at a three-and-a-half-year low. The shortage of steel has caused the price of steel in the United States to soar 160% since last August. The benchmark price of hot-rolled steel in the United States exceeded $0.260 per ton/kloc-0 in March this year, the highest level in at least 13 years.
At present, the steel price in the United States is 68% higher than that in the global market. Such a huge price gap makes imported steel cheaper than domestic steel even if the import tariff of 25% is included. The analysis pointed out that the high price of raw materials will not only weaken the competitiveness of American parts manufacturers in the international market, but also affect the domestic consumer market in the United States.
Steel market situation In 2020, the steel industry is still in the upward space, and the market is affected by various favorable policies and performs well. In 2020, the economic indicators of Valin Iron and Steel will continue to improve, which is mainly influenced by six factors. First, the product structure was adjusted, and professional steel products performed well in market segments. Second, it is at the leading level in the industry in tapping potential, increasing efficiency and reducing key costs.
Third, the application of intelligent manufacturing has achieved remarkable results in improving production efficiency and management efficiency. Fourth, in recent years, the structural reform of supply side has made the supply and demand of steel market relatively balanced. Fifth, a lot of work has been done in reducing taxes and fees, and financial expenses have been greatly reduced. Sixthly, the internal reform is continuous, leading high-quality development through Party building, establishing Socialism with Chinese characteristics enterprise system, deepening internal reform to reduce costs, and greatly improving market awareness.
In 2020, China will take the lead in achieving positive economic growth in the world. 202 1, the external conditions are very good, the favorable factors in the steel market outweigh the unfavorable factors, and the supply and demand will be basically balanced. I am optimistic about the development of the industry.
202 1, the steel market made a good start, the price rose, and the social inventory was relatively low. Mainly affected by several factors, on the one hand, the price of raw materials is firm, and the price of iron ore has been around $0/70 per ton/kloc-0 since 202 1; On the other hand, the demand for steel products is strong, the export orders of downstream customers are very full, and a large number of electromechanical and household appliances are exported, which drives the indirect export of steel products.
The current trend of the steel market will affect the trend of the whole year, and the overall situation is optimistic, showing three characteristics. First of all, it is predicted that the demand for 202 1 steel will be better than that of the same period last year. What is 202 1? Fourteen or five? At the beginning of the year, all localities put forward relatively high economic development goals. Will play a pulling role in steel demand.
Secondly, the demand structure of steel products will change. The prices of industrial materials and high-end steel products are relatively good, while building materials mainly depend on the real estate industry. Iron machine? Infrastructure construction is relatively weak. Finally, the steel export situation in 20021year will be better than that in 2020. With the global vaccination, the global economy will recover after June this year. Steel is the basic material, and the global demand will be relatively strong. China's steel is more competitive, and some developed economies abroad adopt loose monetary policies, which will push commodity prices higher.