Why is the price level of international SPA-H steel far higher than that of China

The price level of international SPA-H steel market is far higher than that of domestic steel in China, which is a major feature of the global steel market at this stage. At present, China's steel price index is 24% higher than that at the beginning of this year, while the international steel price index is 58% higher in the same period. In the middle of May, the price per ton of hot rolled coil in Midwest steel mills in the United States was US $1644 (about RMB 10526), while the domestic price per ton was only about 6000 yuan.

The main reason for such a huge price difference lies in: in the face of the same strong demand for SPA-H steel, China's domestic steel production situation is good, and the supply-demand relationship can be roughly balanced; However, the recovery of overseas steel supply chain lags behind, resulting in a large gap between supply and demand. In order to deal with the "steel shortage", some countries began to ask their governments to control steel exports. It is expected that the resource shortage in the international steel market will be difficult to change or even further develop in the future. Due to the depreciation of the US dollar, the international steel market price will continue to rise, and the price gap between domestic and foreign SPA-H steel will widen.