The price of iron ore broke the CNY1,000 mark, and the production cost per ton of steel companies soared by CNY260

"Crazy Stone" appears again! Since December, under the influence of multiple factors, the price of iron ore has soared, once breaking through the thousand yuan mark. On December 15, the futures price of the main iron ore contract (2101) closed at 1059 yuan, an intraday increase of 1.59%. If calculated from the April low, the iron ore index rose more than 100%.

Iron ore raw materials are rising sharply, and steel companies that have just picked up and are now facing a situation of substantial increase in production costs. In addition, the upstream and downstream industries associated with steel and the traders of the related chains have a huge influence.

Iron ore prices have risen by 60% this year

Although yesterday (December 14), the Platts index of iron ore (62% powder) fell by more than 5 points (as of the time of writing), but it was still as high as $155/ton, the highest level in eight years. At the same time, the domestic iron ore main contract futures price has been growing wildly. The main iron ore contract (2101) has broken through the 1,000 yuan mark, rising to a maximum of 1093 yuan per ton, the highest price since its listing.

What is the reason behind the skyrocketing iron ore futures? An iron ore industry practitioner told the upstream reporter that the iron ore market is currently in short supply. Taking overseas ore Vale as an example, the iron ore output in the first three quarters of 2020 is 220 million tons, a year-on-year decrease of 3.5%, and the pellet output is 22.56 million tons. , A year-on-year decrease of 30.3%.

In addition, there is a shadow of capital speculation behind the skyrocketing iron ore prices. Guotai Junan Iron Ore Analyst Ma Liang reminded that the current upward drive for iron ore still exists. It should be noted that the recent market’s acceleration and volatility have led to phased dominance of emotions and gaming factors. Investors should take precautions and control. risk.