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Steel market and exporting news March 2022

1. Global petroleum cost soared

By the influence of war between Russia and Ukraine, the global petroleum cost is soaring. Because Russia is energy superpower, most countries rely on its energy supply, especially the Europe countries. After outbreak of war, USA and many allies executed Economic sanctions. One of the biggest influence is that the global petroleum supply narrow down its filed and make its cost increased.

At the same time, some of sleeping oil and gas projects awake. As so the OCTG product demands and supply increased, we have good news that won 3000tons casing contract on this month.  


2.Steel raw material cost is up and down during the whole month.

On the earlier of March until 8th Mar., it was increasing trend, which is around US$100/Ton by influence of market changes(War,the National Peoples Congress and the Chinese Political Consultative Conference NPC&CPP,market recovery, etc. ) ;

But by the government intervention, it decreased since 8th Mar. Until to the mid of Mar ;

Later, it backs to normal and keep increasing at the end of month ;

Comparing to Feb. the whole steel raw price level cost increased around US$70/Ton and still in increase trend because market short of material now.Tangshan Iron&Steel and Shougang Group stopped/limited production. And other mills‘cost are increasing.

 

Steel Prices


3.Container Sea Freight down / Bulk Shipment Freight Increased

One of good news is that the global container sea freight decreased during this month. Comparing to the last year, it is around US$2,000-3000/container at least in some of countries. For example, USA-Miami, it was US$15000/40GP on the end of last year, now it is US$11500 ~ US$12000 around per container. Different countries, different rules. Just check with our professional team for the current best sea freight.

However, bulk sea freight increased around US$20WM as the bulk cargo volume has reduced and the global petroleum cost increased.

 

4.USD currency:1 : 6.33 on 2022-03-30 21:57

The USD currency fluctuated heavily since 6.29 ~ 6.36. And it decreased 0.4% comparing to yesterday.

In the short term, the sharp depreciation of the RMB exchange rate within a month is directly related to the international environment. The direct impact of the Ukraine-Russia war is that the United States, as a crude oil country, USD currency will increase in value and local currency devalued to a certain degree.

Edit by Vivian Zhang

Bestar Steel Co., Ltd


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