Steel prices steel prices decline unabated loss of business – steel prices, stee
For the domestic steel market, "Kim nine silver 10" has become an unattainable fairy tale, the reality of the brutal than imagined. Baosteel's sales center in the release of the price adjustment notice that Baosteel will be in December sales of steel products in domestic futures prices to be adjusted. It is reported that steel prices since the peak in June since the domestic steel prices have declined for 4 months, or more than 30%.
Part of the shutdown of steel enterprises reduced losses
Face down domestic steel prices crazy situation, China Iron and Steel Association recently convened, including Baosteel, Anshan Steel, Wuhan Iron and Steel, etc., more than 70 iron and steel production and management company held a seminar, the core of the meeting is to understand the current domestic steel problems facing the industry, to stabilize the market panic spreading.
Business representatives attended the meeting, reflecting the current domestic steel producers generally face difficulties in several areas, bear the brunt of the price decline in the profit slump. It is understood that entered in September, October has been the domestic steel industry profits slump, some steel mills an average loss of about 1,000 yuan per ton. Affected, many steel companies have chosen cut live, "and the production of 1,000 yuan a ton of losses, not as simply not producing." Insiders in a steel company says. Shougang Group Chairman Zhu Jimin
previously admitted that the current Shougang steel prices higher than the cost of 1,000 yuan to 2,000 yuan / ton in September to set the breakeven point has been penetrated. He said that Shougang cold rolled and galvanized sheet plant, cold rolling mill in Shunyi at a loss, will cut production if the market downturn.
According to "my steel" The latest monitoring shows that in the last week, all major varieties of steel prices continue downward. Tons of construction steel prices drop to more than 650 yuan, Shijiazhuang the week the market fell a record 1,000 yuan per ton.
It is understood that production of the downstream steel industry slowdown or even negative growth, leading to falling steel prices, but also makes the pressure increase in steel prices in the inventory. At the same time, the recent domestic steel prices decreased export orders, some enterprises in November, December's export orders is only about half of normal.
Reversal of supply and demand caused the price collapse
Despite the recent domestic steel enterprises have limited production in order to stabilize the market price of steel, but steel prices are still way down. Since July of this year, most of the varieties of steel prices have dropped from 2000 to total 3,000 / ton, down 30% to 40%. "The reason is supply and demand reversed, supply increases and demand falling sharply," China Steel Industry Association, said Wu Xichun consultant, "a serious market panic and buy up not to buy or, to enlarge the decrease in demand."
It is reported that 1 in August this year, China's crude steel equivalent to the amount available for consumption by 34.437 million tons year on year, up 12.2%, compared with 2.5 percentage points higher than the same period last year. The same period, the actual growth rate of urban fixed asset investment of less than 20% export growth rate dropped 5.3 percentage points year on year, the industrial added value down 2.7 percentage points, the main industrial products in the automobile, refrigerator and air conditioning were negative growth.
Wu Xichun said that in addition to changes in supply and demand, domestic imports Iron ore Agreement price inflation is soaring steel prices plummeted this year, the direct cause. In addition, another important factor is the U.S. financial crisis triggered by the global economic slowdown, causing great psychological impact on the market.
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The current dilemma facing the industry, China Steel Association Vice Chairman Luo believes that the industry should not be too negative and pessimistic. "Downstream industry demand will weaken, but not so serious decline, blindly price cuts can not stimulate effective demand.
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