Behind the soaring steel price of 600 yuan in Guan

2022-08-08
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On the morning of October 22, the agent received the price notice from Liugang again. From now on, the steel factory will increase the ex factory price of all products of deformed steel bars, high-speed wire rods and pan screws in Guangxi by 80 yuan/ton

this is the eighth consecutive increase in the ex factory price of Liuzhou Steel in just 14 days after the National Day holiday. The cumulative increase of rebar is 370 yuan/ton, and the cumulative increase of high-speed wire is 290 yuan/ton

"silver October" steel prices soared by 600 yuan

Zhang Lin, general manager of Liuzhou Chenhua Trading Co., Ltd., told that although the price of Liuzhou Steel has risen by such a large margin, he is still urging the factory to rush to deliver goods to himself. He can only get two or three hundred tons of goods a day, or more than 100 tons a day at a minimum

in fact, although the ex factory price of Liuzhou Steel has increased by nearly 300 yuan/ton, the market price in Liuzhou, Nanning, Wuzhou, Yulin and other places in Guangxi has increased by more than 600 yuan/ton at most

before the National Day holiday, the price of Liuzhou Steel Rebar was only 2840 yuan/ton. Up to now, the highest price has been sold to 3480 yuan/ton, a full increase of 600 yuan/ton, while the rise of small-size rebar has reached 650 yuan/ton. You know that in the previous two or three years, the continuous increase of market price is difficult to exceed 200 yuan/ton

Liuzhou Chenhua company is located in zhegujiang steel logistics park, which is also the warehouse of Liuzhou Steel Group. At present, there are 5000 tons of construction steel in stock in such a large logistics park, but these goods have already been ordered. Liugang currently maintains zero inventory, while just two months ago, Liugang had at least 50000 tons of construction materials in stock

in such an urgent market environment, Zhang Lin is still calm because of the strength of the company. Just next to Chenhua company, twoorthree steel trading companies have closed down and left. "Before last year, there were more than 30 steel trading companies in Liuzhou market. This year, there were a big 'reshuffle', and now there are still more than a dozen, reduced by nearly half." Zhang Lin said. As for her company, it has sold 120000 tons of Liugang steel so far this year, and now it is slightly profitable. "Thanks to the construction of the logistics park, the labor cost has been greatly reduced, because before last year, the company had 106 employees, but now there are only 15 employees, a decrease of nearly 80%."

the long drought in the market meets the sweet rain

"don't expect 'gold nine silver ten', just hope that the steel price won't continue to fall." At the end of August, MI xiuhai, general manager of Guangxi Chenhua Trading Co., Ltd., talked about the future of steel, with a slightly helpless expression on his face

the reason why mi xiuhai said this is because since the Spring Festival this year, the domestic steel market has continued to operate weakly since it can meet the durability test, the test of the relationship between tightening range and pressure, and the test of spring tightening under specific pressure. The market prices of all steel varieties have continued to fall, and the prices of some of them have fallen by more than 100 yuan per ton within a week. Most steel enterprises have suffered losses for several consecutive days. By the end of September, At present, the price of deformed steel bar of Liugang in Guangxi is 2840 yuan/ton, which has fallen to the lowest point in recent 10 years

Guangxi Chenhua Trading Co., Ltd. mainly sells construction steel of Liugang and Pinggang, with sales of about 250000 tons in previous years. Mi xiuhai said that since the beginning of this year, the steel market has been in a bad situation and has been in a "cold winter" state. With the construction price falling from 3450 yuan per ton at the beginning of the year to 2800 yuan per ton at the end of August, a drop of 650 yuan per ton. In September, the rebar futures market price fell to more than 2500 yuan per ton, a new low in recent years. So far, the steel sales volume is only half of the same period last year,

October 3, The 9-day Gymnastics World Championship will be held in Nanning. During this period, all construction sites in the urban area of Nanning will be shut down, and the traffic restriction policy for large vehicles will be implemented on the main traffic roads. "According to past experience, it may be difficult for the steel price in Nanning market to rise in October," said mi xiuhai, "Because of this, we are still not optimistic about the market in October. Our inventory was reduced to less than 1000 tons by the end of September, while our inventory has been maintained at more than 10000 tons in the first half of the year."

it is understood that last year, the inventory of building materials in Nanning market remained at the level of 10000 tons, and the inventory in Liuzhou market also reached more than 70000 tons. At present, the inventory of building materials in Nanning region has fallen to about 100000 tons, and that in Liuzhou region is about 20000 tons. "At present, all dealers are not prepared for inventory, resulting in a sharp decline in inventory in Guangxi," Zhang Lin said. "Under the condition of extremely low inventory, driven by the rising sentiment in the peripheral market after the national day, coupled with the hype mentality of dealers, this wave of market broke out in unexpected circumstances."

Liugang group broke out against the trend

just when the domestic media repeatedly lamented that the steel market was in a "cold winter", Liugang group, the leading steel plant in Guangxi, seemed to usher in its own "Spring Festival"

ZHONG Dejun, general manager of Liugang Nanning sales company, said, "as of the end of September, Liugang group has made a profit of about 100million yuan, and the annual profit target is 300million yuan." There are only four months left this year, from 100million yuan to 300million yuan. How can this gap be crossed? First of all, we must ensure that the annual business income of 70billion yuan and profit of 300million yuan are achieved

at present, the domestic steel market is in a state of "high output, low inventory and micro profit". The price of iron ore, coal and other bulk raw fuels continued to decline, and the raw fuel cost of Liuzhou Iron and Steel Co., Ltd. was further reduced. Compared with the price of raw fuels, the plastic film blowing machine industry kept up with the pace of the times and gained a certain profit margin, providing favorable conditions for Liuzhou Iron and Steel Co., Ltd. to produce at full capacity

in June, the leaders of Liugang conveyed at the general manager's office meeting the exciting news that after turning losses into profits in a single month in April, Liugang's production and operation continued to maintain a good momentum and achieved a profit of 100million yuan, and sent a strong signal to all cadres and workers of Liugang to achieve greater results in production and operation

at present, the domestic steel market is in a state of "high output, low inventory and micro profit". The price of iron ore, coal and other bulk raw fuels continued to decline, and the raw fuel cost of Liuzhou Iron and Steel Co. was further reduced. Compared with the raw fuel price, the steel price won the Anhui provincial government quality award, which provided a certain profit margin, providing favorable conditions for Liuzhou Iron and steel Co. to produce at full capacity. At the same time, the external development environment of Liugang has also been greatly improved, creating a good environment for enterprise product structure adjustment and enterprise transformation and upgrading. All employees of Liuzhou Iron and Steel Co., Ltd. should be based on their posts, effectively enhance their sense of urgency and determination, plan and promote the construction and development of Liuzhou Iron and Steel Co., Ltd. with greater confidence and determination, strengthen opening-up cooperation, reform and innovation, and enhance the competitive strength of Liuzhou Iron and Steel Co., Ltd. in the severe industry situation

"Although Liugang also suffered the most serious loss in recent years in the first quarter of this year, with the deepening of the overall work idea of 'adjusting structure, expanding market, promoting reform, strengthening management and grasping clean government', Liugang began to make profits for a single month in a row from April, and achieved a comprehensive turnaround in July. After the sharp rise in prices in October, it is preliminarily estimated that Liugang's cumulative profit is close to 200million yuan, which is a public profit of 300million yuan for the whole year The company is full of confidence. " A staff member of Liugang group said

it is understood that the output of iron, steel and steel of Liuzhou Iron and steel group was 7.1232 million tons, 7.4422 million tons and 8.2172 million tons respectively in September this year, with a year-on-year increase of 2.46%, 3.12% and 8.39% respectively. In the first eight months, a total of 8.3313 million tons of steel were sold, with a production and sales rate of 100.9%; The steel rate of medium and high-grade varieties is 54.7%

in the later stage, the steel price may be rationally adjusted.

this round of market rise began with the rise in the price of steel billets in Tangshan during the national day. The government asked for a reduction in production during the APEC meeting, and then there was a wave of steel billet prices close to 200 yuan/ton. However, the market demand has weakened recently. Under the premise that the macro is not good and the downstream demand is difficult to form support, Tangshan steel market has fallen significantly recently

"from the Spring Festival to the end of September, the market price fell by about 600 yuan, but the market price rose nearly 600 yuan in just a dozen days after the national day, which is really crazy. This situation is really unprecedented in ten years," Zhang Lin sighed. "The recent crazy rise in market prices is not sustainable. After the steel plant increases supply and peripheral resources are gradually supplemented, the local market price will gradually return to normal."

Lu Qingyan, general manager of Guangxi changtongli Cooperative Trading Co., Ltd., felt the same way. He said that the biggest difficulty at present was the shortage of funds. In recent years, due to the depression of the steel market, many steel trading enterprises were unable to repay bank loans on time, and banks continued to receive loans from the steel trading industry. Therefore, the end of the year was still a difficult time for steel trading enterprises

"recently, this wave of rise has been too fierce, and traders have a profit of yuan/ton. It is inevitable that the short-term steel price will fall. It is expected that the future market may continue to be in a 'winter' state." Lu Qingyan said, "at present, problems such as excess steel production capacity, shrinking demand in the downstream steel industry, and lack of funds for steel traders are difficult to be completely solved in a short time, and the road to recovery of the steel market may be long."

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