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Ductile iron pipe manufacturers to talk about the support of the two sources of mineral prices

2020-04-09

Ductile iron pipe manufacturers to talk about the support of the two sources of mineral prices



Ductile iron pipe manufacturers to explain the support of the two sources of mineral prices, seasonal factors and the domestic mine high cost line. Australian hurricanes are frequent in the first quarter, while China will face a busy start-up season after March. Seasonal rules indicate that the upward probability of mining prices is larger seasonally. Linked to the PLATTS index seasonal rules, for nearly three years, mining prices in December of that year, January, February next year will show seasonal increase. The seasonal high for the last two years was in the $140 range of $150 per ton. The bottom of the price is determined by the domestic high-priced domestic ore support. According to the distribution of the global mining capital, the cash capital of the four main rivers mines is only 40 US $60 per ton, while 90% of the domestic mining capital is under 110 US dollars per ton. China's iron and steel industry depends on imported ore 60% to 70% , and the price of domestic ore adopts the form of following foreign ore. Once the external mine price falls below the support level of the internal mine cost, the external mine will take advantage of the internal mine needs. Based on the analysis of seasonal factors and domestic capital distribution, the mining price faced the pressure level of 140 US dollars / ton (corresponding period ore 1040 yuan / ton) in the first quarter and supported at 110 US dollars / ton (820 yuan / ton) in the second half of the year.


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