Steel prices today increased to 5,706 yuan / ton on the Shanghai Exchange. Currently, China’s steelmaking industry is facing disruption due to the widespread power crisis.
Steel prices today increased again
Steel prices today January 2022 delivery on the Shanghai Exchange increased by 65 yuan to 5,706 yuan/ton at the time of the survey at 10:15 am (Vietnam time).
| Tên loại | Kỳ hạn | Kỳ hạn | Chênh lệch so với ngày hôm qua |
| Giá đồng | Giao tháng 11/2021 | 67.950 | -690 |
| Giá kẽm | Giao tháng 11/2021 | 22.370 | -325 |
| Giá niken | Giao tháng 11/2021 | 138.070 | -1.070 |
| Giá bạc | Giao tháng 12/2021 | 4.615 | -168 |
| Giá thép | Giao tháng 1/2022 | 5.706 | +65 |
Futures price list of some metals on the Shanghai Exchange (Unit: yuan/ton).
China’s steelmaking industry is facing disruptions due to the widespread power crisis, making long steel production currently more affected than flat steel, according to S&P Global Platts.
Iron ore chart at Shanghai exchange (Source: Shfe)
However, the much larger impact on the manufacturing industry will quickly stifle demand for flat steel in the near term.
The country’s electricity crisis has spread across provinces and regions due to a shortage of coal-fired power supplies and tightening energy consumption targets.
China launched its energy targets in early 2021 as part of its ambitious plan to achieve its carbon targets, which include reaching a peak of carbon emissions by 2030.
After exceeding the plan in the first half of the year, 18 provinces and regions are currently implementing power reallocation, creating impacts on both steel production and demand.
Photo: Pittsburgh Post-Gazette
According to sources from mills and traders, the control is affecting steel mills in 12 out of 18 provinces and regions, including Heilongjiang, Inner Mongolia, Shandong, Jiangsu, Zhejiang , Sichuan, Guizhou, Yunnan, Guangdong and Guangxi.
As a result, according to S&P Global Platts calculations based on data from mill sources and traders, the combined daily crude steel production in these regions is expected to fall by more than 140,000 mt/d from levels seen. in mid-September.
According to the China Iron and Steel Association, during the period from September 1 to September 20, China’s daily crude steel output averaged 2,623 million tons/day, down 2% from August and 15 percent lower. % compared with the same period last year.
Jiangsu province, China’s second-largest steel-producing locality after Hebei, has implemented power allocation to industrial plants and has seen the biggest impact on crude steel, with output falling by at least 50,000 tonnes. /day compared to mid-September.
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