Large price of steel "diving" dealers did not discuss the pain

At 10 o'clock on the morning of November 11, the reporter went to the North Second Ring Road steel market in the provincial capital. In the huge market, there was only one worker in the steel crammed with rusty steel. The reporter found that only 3 of the Nan Pai merchants in the market opened the door, and only a dozen merchants opened stores in the north.

Steel fell by nearly 1,000 yuan per ton

"Last month, the price per ton of steel fell below 4000 yuan from 4,900 yuan. It lost nearly 1,000 yuan per ton, and lost all the money earned in the previous 9 months." In a store in the middle of the northbound market, The boss Ma Qingquan reluctantly said that the steel business has become increasingly difficult to do, especially after the steel price plummeted in October. Many steel dealers have chosen to leave the hotel. Originally, there are more than 60 merchants in this market. 20 came home.

"The 'winter' of the steel market this year is too early, sometimes falling by 200 yuan per day per ton. The fluctuation of steel prices last year was only around 50 yuan." Ma Qingquan believes that domestic credit tightening, railways, highways, real estate Investment in the infrastructure and construction industries was affected, and the demand for the steel market dropped significantly, resulting in a sharp dive in domestic steel prices in October this year. "The original has pulled goods every day, and now it is difficult to meet a buyer in a few weeks." During the interview, a number of dealers in the market complained to reporters. "I can't see the future of the steel business. If I quit, I would like to urge the debtors to collect some money. I will return to Xinji's home next month." Yang, who has been in the steel market for eight years, pessimistically Say.

For steel dealers, this winter is particularly cold. In the past October, the domestic steel industry suffered a reduction in production and price cuts. Major mills such as Wuhan Iron and Steel and Shagang continued to lower their factory prices, and the industry's profitability declined.

Provincial Price Bureau price monitoring network shows that in October, the overall decline in the price of steel and non-ferrous metals. Affected by factors such as the reduction of new housing construction projects, construction rebars and wire rods fell by 10% and 8%, respectively, and average rebar price per tonne fell by 457 yuan a month.

Steel storage at the end of the year

"The steel distributors in the market are mainly divided into two categories: 'large households' and 'small households.'" Yang Lijie, manager of a steel product distribution point of the provincial capital, introduced that the business model of "large customers" is cash transactions. They purchased steel from steel manufacturers or large distributors. The steel sold to the contracted companies was less affected by price fluctuations. However, the remaining market price of the retail part was never accounted for, and the stocks after the sudden drop in prices would face larger prices. The loss; "small households" business model is "zero inventory", after the order was received, the first money was purchased from major dealers to buy steel, and then sold by credit sales to downstream machining enterprises or construction companies, etc. The market price is profitable, but after the price fluctuations, the downstream customers often do not perform the agreement and the risk is high.

Yang Lijie told reporters: "In the near future, many domestic real estate development companies have broken the capital chain and the construction period has been delayed. It is difficult for us these 'small-household' dealers to recoup the previously owed construction steel debts. Customers either say there is no money or the price is reduced to Because of the unwillingness to perform the previously signed contract, we had no choice but to drag it. Our provincial capital has more than 10 million.

According to the law of previous years, steel dealers should start preparing for winter storage after entering November. However, during the interview, many dealers stated that the current trend of the steel market is uncertain, the variables are more, and they are not afraid of winter storage so as to avoid further decline in steel prices. Loss.

Provincial Price Bureau analysts said that due to the fact that domestic steel production will remain high in the coming months, and downstream demand recovery is harder than expected, the market supply and demand deficiencies will be difficult to resolve in the short term. "It is expected that the weak operation pattern of domestic steel market prices will continue in the later period."