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    Steel Prices Are Expected To Rebound Next Year

    2008/12/2 0:00:00 35

    A steel mill in our city has adjusted the price for the 8 time in the past half month, and some dealers have been shut down.

    "From last month, steel prices plummeted, falling overnight by 200 yuan / ton," Chen Zhanfa, a steel dealer, said that steel products plummeted, and he had a premonition that the steel industry had to pass the "winter" ahead of time.

    Watch "spring" in "cold winter"

    "This year's steel prices fluctuated greatly, soaring in the first half of the year, and plummeting in the second half of the year". Mr. Zhuang Quanqing, the City material group company, said that he was responsible for distributing the steel products of the real estate, and felt that the steel price was on the roller coaster this year.

    In Mr. Zhuang's office, the reporter saw the data of steel trading price in our city.

    Now the local leading steel plant two steel grade 3 steel bar quoted price 3700 yuan / ton, compared with the previous day price rose 30 yuan / ton; the same specification three grade rebar price quoted 3750 yuan / ton, compared with the previous day price rose 30 yuan / ton.

    Zhuang Quan Qing said, "although steel prices have rebounded slightly in recent days, the trend is still at a low level."

    "In the past, it could sell about 1500 tons a month, and now it has sold less than half."

    Chen Zhanfa, a steel dealer, said that the price of the steel market rose and the sales volume was good in the first half of the year. The sales volume was good. Since the beginning of June, the sales volume of the customers has been decreasing.

    The first tier distribution market of steel products in our city is mainly concentrated in the vicinity of the railway station and in the two districts of the Hongzhu port. The reporter visited two steel markets and found that many dealers had reduced their inventories or even zero inventories.

    A steel dealer near the railway station told reporters reluctantly that "if the steel purchased at a high price is not sold, the backlog of warehouses may cause a chain break."

    He counted the accounts for journalists, and stored 100 tons of steel, which was sold at a price of 50 to about 600000 yuan at that time, sold at a low price, and could save a sum of money and wait for an opportunity.

    Otherwise, the opportunity will come, and if there is no money in hand, the opportunity will not be grasped.

    The dealer encountered the situation, the city's steel dealers have to face.

    There are nearly 20 kinds of steel dealers near the railway station, and now nearly 1/3 dealers have closed down.

    "Suspension of business is not the end of business. Orders can be directly directed to manufacturers.

    In the current situation, we can try to achieve zero inventory as far as possible.

    A dealer told us the secret of watching "spring" in "cold winter".

    "Winter" or until the middle of next year

    "Steel is one of the four major materials in the construction industry," Zhuang Chuang said. In the face of the current global financial crisis, the state launched the 4 trillion investment plan. "As long as there are infrastructure projects, there will be a market for steel."

    Zhuang Quan Qing still has confidence in the future of steel market.

    He now pays attention to some economic news every day, and understands the international and domestic market developments. "It is normal for the steel market to have difficulties at present. The real estate development is few, and the steel sales will not go out. However, before long, the market will surely improve and enterprises will surely overcome the difficulties."

    Jinjiang Sanyi steel mill is one of the few steel mills in our city. The company officials frankly, the steel price drop has certain pressure on the company.

    "Steel prices plummeted, the company frequently adjusted the factory price in October, in response to market price adjustment."

    The staff introduced the steel plant in from October 6th to 20th, continuously issued 8 price adjustment information.

    "If winter comes, can spring be far behind?"

    The relevant personnel of Sanyi steel factory also have confidence in the future market. "The steel plant has to repair the production equipment every year, and the price of steel has fallen. The company can just use this time to reduce production and repair some equipment, which will not affect the production after market recovery".

    City Building Association building materials expert group Lai rain group leader analysis, at present, steel prices decline is the first half of the government's macroeconomic regulation and control lag effect. "Since April this year, the state has issued a series of control policies, such as the cancellation of billet export tax rebate, reduce the steel export tax rebate rate, and so on, after a period of time, steel prices have dropped."

    For the sharp fall phenomenon in October, Lai group leader said, "the macroeconomic regulation and control effect encountered by the national financial crisis, the market has been over sensitive and panic, resulting in steel prices plummeting."

    "The decline of auto manufacturing, construction and machinery manufacturing will undoubtedly adversely affect the steel market," Lai said. For Quanzhou, the impact of the real estate market on steel products is particularly obvious. "The government has introduced macroeconomic regulation and control to expand domestic demand and stimulate consumption, but the impact of policy on the market has lagged effect. The spring of steel may have to wait until the middle of next year."

    Editor: vivi


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