What is the impact of rising steel prices on related industrial chains

The irrational rise in steel prices will not be conducive to the healthy and orderly development of downstream industries, especially the manufacturing industry.

1) Automobile industry: Due to the shortage of chips and the pressure of raw material costs, the automobile industry has adopted a moderate reduction development strategy ahead of other industries, but it cannot reverse the situation that the prices of raw materials and parts of existing models have risen sharply while the terminal prices are unable to increase. Therefore, automakers are more affected by this round of steel price increases.

2) Shipbuilding industry: The shipbuilding industry has a large demand for steel. In addition, the shipbuilding industry has a long production cycle. In recent years, the fierce competition in the shipbuilding industry has led to low prices. The increase in steel prices has not only increased the cost of raw materials for shipbuilding enterprises, but also narrowed profit margins. It also seriously affected its capital cost and turnover rate.

3)Infrastructure construction industry: Steel prices and building material prices continue to rise, and the impact on infrastructure is mainly manifested in three aspects. One is the increase in construction costs, the other is that the project is forced to postpone the construction progress due to high costs, and another is the pressure and risk of import and export funds caused by high prices.

4) Home appliance industry: The production cycle of home appliances is relatively short, the price of single products is not high, and the flexibility to respond to the market is strong. Costs can be appropriately passed on by increasing the terminal sales price, especially for small household appliances; but for export orders, due to price locks and long delivery cycles, it is difficult to pass on costs through price adjustments. Therefore, the current round of steel price increases will have an adverse impact on the export of the home appliance industry.