Analysis of the Influence of Three Important Indicators on the Trend of Steel Prices

Analysis of the Influence of Three Important Indicators on the Trend of Steel Prices
The three indicators are: Komatsu excavator operating hours, production and inventory data of key steel enterprises of China Iron and Steel Association, and Tangshan billet prices.
These three indicators are very simple, but they can provide better guidance for the trend of steel prices in a certain period of time, so as to judge the trend of steel prices with varying degrees of timeliness and forward-looking.
The working hours of Komatsu excavators can predict the steel market demand in a forward-looking manner; the output and inventory data of key iron and steel enterprises of China Iron and Steel Association are the most authoritative and accurate data to predict the steel market supply; There is a very high reference value.
1. Predict the market demand for steel through the operating hours of Komatsu excavators
Real estate and infrastructure steel account for more than 50% of the total domestic steel consumption, which establishes that the operating hours of Komatsu excavators have a high correlation with the forecast of steel demand.
Foundation construction is the stage with the largest consumption of steel and the largest number of excavators per unit of time. After entering the construction of the superstructure, the number of excavators required to be used is greatly reduced, but the consumption of steel mainly rebar still occupies the steel consumption required for the entire project. about two-thirds of the total, and gradually decreases with the height of the construction floor. In projects with a construction period of about one year, when the start-up of excavators enters a downward stage, the consumption of steel can still be maintained for about half a year.
2. Predict the steel market supply through the output and inventory data of key steel enterprises of China Iron and Steel Association
China Iron and Steel Association is a government agency established by the transformation of the former Ministry of Metallurgical Industry. It has close relations with domestic large, medium and small steel mills and can also indirectly guide the work of steel mills.
80% of the domestic steel mills are members of the China Iron and Steel Association, and the data released by it contains 90% of the domestic steel production capacity and steel mill inventory, which is both extensive and authoritative.
The output and inventory data of key steel enterprises of China Iron and Steel Association are released on a ten-day basis, which is timely and accurate. When you see the inventory data of steel mills, this inventory has been transmitted to the steel market everywhere, which is of great reference significance.
3. Predict the price trend of steel on the same day or the next day through the price of Tangshan billet
Tangshan City is the region with the most concentrated steel production capacity in China, with a steel billet output of about 144 million tons, accounting for 58% of the steel billet output in Hebei Province and about 14% of the national steel billet output.
To analyze the rise and fall of steel prices, the first indicator that must be paid close attention is the ex-factory price of Tangshan billets.

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