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[Ferro-Alloys.com]

  In 2020, the high social inventory of the iron and steel industry will run through the whole year, the raw material price will obviously raise the production cost of the enterprise, and the overall profit of the industry is expected to continue to decline. In view of the steel price trend in 2021, analysts pointed out that the steel price has achieved a significant rise in 2020, and the space for the steel price to continue to rise in 2021 will be squeezed.

  It is worth noting that in order to promote the ultra-low emission transformation of iron and steel enterprises, Shanxi and Jiangsu provinces will implement differentiated electricity prices in 2021; the Ministry of ecological environment and other departments will allow the free import of recycled iron and steel raw materials. The market believes that after the liberalization of scrap import, it is an effective supplement to iron ore raw materials. In addition, the energy consumption of scrap is small, which can alleviate the pressure of environmental discharge to a certain extent.

  In the first quarter, due to the impact of the epidemic, the steel price fluctuated downward. Since the second quarter, with the recovery of demand fluctuation upward, from November to December, due to the price rise of iron ore and coke main raw materials, the market obviously "tilted tail" and fell down in the demand off-season. In 2020, the domestic iron and steel market will present a broad fluctuation and upward fluctuation pattern. Throughout the year, the inventory remained high-level, the price of raw materials significantly raised the production cost of enterprises, and the overall profit of the industry continued to decline.

• [Editor:Catherine Ren]