Since 2020, the price of iron ore and other steel raw materials and fuels has risen strongly, which has led to increased pressure on API 5L grade B PSL2 hr coil mills' production costs. According to industry organizations, iron ore demand in China's steel industry will increase by about 40 million tons in 2021. Even with a strict production reduction plan, the increase in iron ore demand may still be at least 20 million tons.
It is expected that iron ore prices will remain high in 2021, and it is difficult for them to fall sharply. In addition to iron ore, scrap market price is also easy to rise but difficult to fall in 2021, and coke prices are also difficult to fall significantly. In 2021, the cost pressure of API 5L grade B PSL2 hr coil and so on steel enterprises is still relatively high. Supported by rigid costs, most steel enterprises choose to increase the EXW price of API 5L grade B PSL2 hr coil.
Just like you, 70% customers choose long-term cooperation with BBN steel not only for our good product and service quality, good reputation in the international market, but also for our experienced one-stop raw material supply and further steel processing!
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