Steel prices are expected to be stable in the fourth quarter

China Iron and Steel Industry Association held the information conference of the third quarter of 2020 in Beijing. Qu Xiuli, vice president and Secretary General of China Iron and Steel Industry Association, said at the press conference that from the investigation and discussion of the member units by the association, the orders of steel enterprises were relatively full in the fourth quarter, and most of them were cautious and optimistic about the market trend. From the cost point of view, it is difficult for steel prices to drop significantly. From the perspective of supply, steel prices are also difficult to rise significantly. The steel prices will be relatively stable and will continue to show a small wave dynamic potential.

Qu Xiuli said that at present, the prices of iron ore, coal, coke and scrap steel are at a high level and showing an upward trend, and steel enterprises are facing the pressure of rising costs. It is difficult for iron and steel enterprises to improve efficiency when steel prices are difficult to rise substantially. It is estimated that the profit of iron and steel enterprises is expected to reach about 180 billion yuan in the whole year, with a slight decrease or flat year-on-year.