As the main raw material of 2205 stainless steel tube of the iron ore, iron ore prices fell, and iron ore stone too seek pattern has been formed, the bottom of the ore price continues to decline, the trend of steel prices will continue to suffer in the future ore price movements of the drag.
For the future trend of the price of iron ore, iron ore price or will continue to bottom. One is the oversupply situation has been formed, due to China's economic slowdown, real estate inflection point and greatly affect the steel market demand, now 2205 stainless steel pipe factory, general average to maintain the production of iron ore amount in 30 days or so, no urgent procurement requirements, and since May this year, the port of iron ore inventory has remained at 1.1 tons high, 2205 stainless steel seamless tube factory not anxious to buy ore, iron ore started by the seller's market into a buyer's market.
On the other hand, is still optimistic about the future of 10 years of China's iron ore demand for iron ore giants, because China's economy still maintained a strong growth. There are shadow hiding giants know what one is about. Iron ore prices this year from the beginning of the $135 to a low of $89, they still have enormous profit space, in addition to a few giants, there are few mines the in between 30-40 U. s.dollars, even the domestic steel enterprises overseas investment rights and interests of mine, not to mention the domestic mine about $100 to save the production.
If iron ore giants success through the current prices to curb competition, maintain their monopoly position, even if the current stage of iron ore prices fall, when the demand for better, for iron ore prices have pricing power miners will raise prices. So the ore price is unlikely to rise to $100 / ton on price, but some 2205 stainless steel tube enterprise is preparing in larger than expected additional investment in Western Australia mine expansion in $3250000000 to boost iron ore production, why did they play in nutrient price, making the current oversupply intensified, the ore price bottom temporarily difficult to stable. Although this year's iron ore price decline is far greater than the decline in steel prices, making the 2205 stainless steel tube enterprises have a certain profit space, but the late iron ore prices continued to decline, steel prices are also difficult to support.
In the process of steel prices dropping, the market has a 3000 yuan / ton heart stable price, even if the current environment is bad, steel prices are less likely to fall below this line, because the 2008 financial crisis, the current market environment is worse than that? Although there are micro stimulation, but the economic deceleration shift has become a reality, the contradiction between supply and demand of steel city in the long-term relief way.