Just after Baoshan Iron and Steel, Wuhan Iron and Steel and other industry leaders cut ex-factory price, many small and medium steel mills also have to follow up yesterday. "At present, the ex-factory price and sales price of some steel enterprises have been upside down." Yesterday, Tang Zhi, head of my steel network Chengdu branch, said that most steel companies are basically no profit at present, and there may be a total loss this month, some small and medium-sized Steel companies have begun to cut production. DONGYAN INTERNATIONAL CO LTD , https://www.topcutools.com
"Down, downturn" is the main tone of the steel market this year. "Everyone's inventory is too high, they are not sold at all, and the price is not stable," said an industry insider in Chengdu. At an industry situation analysis meeting held by the Sichuan Steel Distribution Association on June 5, more than 600 steel merchants from Sichuan Province attended the meeting. "Everyone is very embarrassed." A participant said, "When will the steel price bottom out? Why is this year's decline?" became the most concerned issue for the steel merchants.
"In my opinion, in addition to the reduction in steel demand caused by real estate regulation, the steel industry itself has also played a decisive role." Tang Zhi said that Sichuan's annual steel demand is about 17 million tons, but currently only Sichuan local steel. The production capacity of the enterprise reached 18 million tons, and the steel in the field continued to enter Sichuan, further boosting local stocks.
According to the monitoring data of "My Steel", as of the end of last week, the total inventory of steel in Chengdu area reached 442,000 tons, and "reasonable inventory should be around 300,000 tons." Under high inventory, steel prices also fell upside down. Take the price of secondary rebar in a steel mill in Sichuan as an example. The ex-factory price is 4170 yuan/ton, and the market sales price is only 4025 yuan/ton. "This upside down phenomenon is expanding," said Hu Yanping, a researcher at China United Steel Corporation. At present, private steel mills in North China are more likely to cut production. BHP Billiton and Rio Tinto require the 23% increase in iron ore prices in the third quarter. Steel companies can't afford it.
Xu Lejiang, chairman of Baosteel Group, told the media on the 8th that the highest price of iron ore will appear in the third quarter this year, and the price of ore in the next four quarters will definitely fall. At present, the spot price of imported iron ore in China is around US$150/ton.
Summary Just after Baoshan Iron and Steel, Wuhan Iron and Steel and other industry leaders cut ex-factory price, many small and medium steel mills also have to follow up yesterday. "At present, some steel prices ex-factory price and the selling price has been upside down." Yesterday, my steel mesh Chengdu branch head Tang said that the current steel prices most basic non-profits ...