CBRC warning of high steel inventory steel industry credit risk – steel stock, i
Large number of traders in the hands
"If the bank is really tightening our credit, look at the current inventory risk is still relatively large." Operating in Beijing, a steel trading company, WANG Jing-yu are all worried about that. He recently had a connection to several Cooperation Phone banks to ask about his inventory and sales issues. In order to avoid risks, WANG Jing-yu has been arranged to re-stock company and market risk accounting, inventory control as far as possible at a reasonable level.
WANG Jing-yu to be worried. Recent concern about the financial regulators have begun a high inventory of iron and steel enterprises. "Economic Information Daily" reporters from authoritative sources confirmed, the CBRC recently issued a document has been specifically warning of major commercial banks, suggesting that banks concerned about the credit risk of iron and steel enterprises, and called on the steel industry operating conditions investigated. This also means that, in addition to rising costs, steel companies before the easy credit conditions may change.
According to sources, the document issued time January 6, 2010, the PBC on the steel industry, the credit risk of high stocks held a forum to bring. Apart from the relevant department heads Steel Association, the officers attending the meeting also Development and Reform Commission, Ministry of Industry, China Banking Regulatory Commission and other relevant department heads. Central Bank of inventory on the steel industry and to understand the problem of excess capacity, but also once planned to conduct research organizations to steel. "Economic Information Daily" reporters on the 20th Division from several commercial banks to understand the relevant departments of some banks have held a separate meeting on the issue of special steel inventory discussion.
From the current market situation, the current steel inventories are not high, a large number of stocks was concentrated in the hands of some steel traders, credit risk factor is also relatively higher. Tianjin, a steel trader to the "Economic Information Daily" reporter admitted that, in general, his company is using "stock collateral" for loans to banks. Is to use bank loans for procurement of steel, for procuring the steel stocks as collateral by banking supervision, each batch of steel products sold in accordance with the proportion of return, and then returned to bank funding. "The cost of loans increased about 50 yuan / ton, the market prices for some time before the faster, the cost could easily be digested." The source said, also because of the late judge better market prices, many traders are stocking up part of the steel, hoping to make a small fortune.
"My Iron" The latest statistics show that as of January 15, stocks in major cities in the community amounted to 12,451,640 tons of steel last year, compared to 6,206,870 tons, an increase of 100.61%. Mainstream varieties of steel stocks showed rebar up to 4.894 million tons, up by 135.36%; hot rolled coil as high as 3.969 million tons, up 178.5 percent; wire 1.228 million tons, up 62%; cold 1.149 million tons, up 29.6%; the board 1.21 million tons, up 14.5%. Analysts believe that, if coupled with steel stocks and end-user inventory, then inventory the entire steel industry may be close to 80 million tons or so. Iron and steel industry, inventory risks are accumulated.
My consulting director Xu Xiangchun steel mesh, said judging from the steel market is expected in the second quarter will be the season of steel, is expected to ease the current high state of steel stocks. But before, if the bank credit crunch occurs, can not be lower demand for steel traders digested the inventory will bring great financial pressure, for repatriating their capital, traders are likely to take price reductions to clear inventory, lead to lower prices. Same amount of money in the hands of traders will be significantly reduced in the downstream market can not digest the case of stocks face more severe financial pressure.
More important point is that the current speculative traders also create the illusion of market demand, pushing up steel prices, while stimulating production of steel post, then pulled up iron ore, coke and other raw material prices. Once prices fell by double pressure of raw materials and production, iron and steel enterprises will face even more severe situation.
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