Negative factors in the hottest steel market weigh

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Negative factors in the steel market weigh heavily on the demand falling to the freezing point under high temperature

since July, large domestic timber mills have set off another round of price reduction since April and may, and the market demand is extremely cold in July. Under the action of these two negative factors, all traders across the country have passively reduced the transaction price in the local market by more than 100 yuan (ton price, the same below) compared with the same period last month

according to monitoring, the average price of 25 × I-beam in key central cities in China on July 23 was 4104 yuan, 187 yuan lower than the market price in the same period last month; The average price of 25 # channel steel was 4117 yuan, 113 yuan lower than the market price in the same period last month; The average price of 5 × angle steel is 4125 yuan, 119 yuan lower than the market price in the same period last month; The average price of 200*200h section steel is 3911 yuan, 139 yuan lower than the market price in the same period last month

domestic large-scale material factories have introduced downward policies, resulting in the domestic profile market price falling one after another. Many traders have to ship upside down due to the impact of new resources. It is understood that at present, the domestic profile shipping upside down phenomenon has become increasingly fierce, but even so, it has not resulted in the growth of market demand. Market demand continues to be sluggish, as a trader said: "according to the current market, price is not a problem, and shipping is the biggest problem". It is understood that it is good for some large domestic profile manufacturers to have a shipment of hundreds of tons a week, and some small and medium-sized traders can't even deliver a few tons in a few days

the downstream demanders have a stronger wait-and-see atmosphere for the steel market. According to some traders, since this year, affected by the real estate regulation policy and the domestic steel market has been depressed, the construction site has been "National Engineering Research Center for engineering plastics" as one of the highest level high-molecular material research and industrialization bases in China, and it is not like purchasing in large quantities at one time as in previous years, which is basically ready to use, The purchase volume is relatively small each time. With the coming of this round of price reduction, the overall purchase volume in the market will be greatly reduced, and the market price will also be weak and fall. In terms of inventory, because many traders are not optimistic about the rights and wrongs of the later market, traders have also been cautious in purchasing resources since this year, especially since June. At present, the inventory of small and medium-sized traders is not large, so the pressure is relatively small. The inventory of some large traders is basically the same as that of the previous period. Affected by demand and other factors, the inventory reduction speed is slow, coupled with problems such as capital turnover, Traders are under increasing pressure

according to the ten day report of China Iron and Steel Industry Association, in the first ten days of July 2012, iron and steel enterprises produced a total of 16.5744 million tons of crude steel, 16.2477 million tons of pig iron and 15.713 million tons of steel. Since this year, domestic crude steel production has remained high. The overall production capacity of domestic large timber mills has also been at a high level. On the other hand, in general, the domestic market demand continues to shrink, and the contradiction between supply and demand is increasingly fierce, putting the pot on the fixed rack. At present, it is an indisputable fact that the domestic economic growth has gradually slowed down, and the domestic real estate regulation has been continuously strengthened, "Infrastructure investment such as tiegongji has not increased significantly. Although the central bank has cut interest rates twice in a month, and the domestic 3-yuan material market has reached 7.98 billion yuan, substantial benefits have not appeared. With the decline of raw material prices, especially billet prices, in mid July, the rebound in factory prices will be hopeless in the short term.

to sum up, the superposition of various adverse factors has invested a huge amount in the already weak steel market It needs the joint action of all parties to get out of this shadow. The so-called accumulated difficulties can't be solved overnight. Under the huge pressure of negative factors, the steel demand in the off-season market in July and August will be even more tired. From the analysis of the frequency of price adjustment of steel mills in July and the above negative factors, the market price will still fall slightly this month. In August, due to the continuous decline of the price of raw materials and the social inventory of profiles under the increasing load, as well as the continuous awesome of macro-control policies, the market price of profiles may be in a state of shock adjustment, but whether it can rebound successfully still needs to wait and see

(source: your steel)

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