Steel mills cut prices and "cast stones to ask the way" steel prices or now turn for the better
with the recent continuous decline in steel prices, the ex factory price of steel mills has been seriously inverted from the market price, and the market is in a strong bearish mood. Over the weekend, many mainstream steel mills have lowered the price of construction steel in the first ten days of December: Shagang thread screw was reduced by 200-250 yuan/ton, Yonggang was reduced by 150-250 yuan/ton, Pinggang thread screw was reduced by 110-200 yuan/ton, and medium antenna screw was reduced by 150-180 yuan/tonIt can be used for the detection of tensile stress relaxation of steel strands, PC bars, steel bars, etc.
"steel mills sharply reduce prices to benefit the market, which is conducive to reducing the upside down range between ex factory prices and market prices. At the same time, because this year's winter storage market has not been staged for a long time, steel mills' price adjustment is also a way to ask for directions." He Hangsheng, editor in chief of the iron and Steel Branch of the business agency, explained that the purpose of such a preferential price given by the steel factory is to stimulate steel traders to buy goods, thereby raising market prices. Therefore, steel prices may rebound in the short term
according to the author of futures, Jiuli special materials for the restart of nuclear power; In terms of small metals, steel prices across the country rose by different ranges yesterday. Rebar HRB335 φ The average price of 25mm was 3703 yuan/ton, up 6 yuan/ton; HRB400 φ The average price of 25mm is 3804 yuan/ton, up 7 yuan/ton; High speed wire hpb235 φ The average price of 6.5mm is 3697 yuan/ton, up 2 yuan/ton, and the average price of hot coil ss4005.5mm is 3913 yuan/ton, up 3 yuan/ton; The average price of cold plate st121.0mm was 4637 yuan/ton, up 2 yuan/ton; The average price of q23520mm medium plate was 3804 yuan/ton, up 2 yuan/ton
in this regard, he Hangsheng said that the rebound in steel prices yesterday may be the manifestation of the price adjustment effect of steel mills. Previously, steel trading enterprises were unwilling to stock up. For example, solving the flexible packaging problems of medical devices and drugs, bottle caps, closures and primary experimental supplies was due to financial pressure, but more importantly, it was due to psychological reasons. In the case of no obvious improvement in steel demand, steel mills can only take the initiative to reduce prices to benefit the market, but whether steel prices can rise depends on whether steel traders buy the price reduction of "steel mills"
the author noticed that after four consecutive months of losses in the whole industry, large and medium-sized steel enterprises finally breathed at the end of the "golden nine and silver ten". According to the data of China Iron and Steel Association, the total profit of 80 large and medium-sized iron and steel enterprises under key monitoring in October was 307 million yuan, which was also the first profit of the industry after the "four consecutive losses" since June
but in November, the profitability of steel mills began to face great challenges. The PMI data of the steel industry in November was 49.2%, down 3.5 percentage points from the previous month, and returned to the contraction range again. The production index and purchase volume index in the sub index were still in the expansion range, and the new order index and new export order index fell to the contraction range. The contradiction between supply and demand in the steel market further appeared. Nevertheless, the willingness of steel mills to reduce production is not strong. "Reducing prices without reducing production" has become the practice of most steel mills to stabilize profits
according to the statistics of China Steel Association, the average daily output of crude steel in China was 1.9518 million tons in mid November, a slight decrease of 0.25% compared with the first ten days of November, but it remained at the level of 1.95million tons. With the completion of overhaul of large steel plants, the total number of blast furnaces overhauled reached a new low. As the steel price rebounded in the first two months, it has brought a certain profit space to the steel plant. At present, the steel plant has a strong willingness to strive for turnaround by expanding production, and the domestic steel production capacity may be further released in the later period
"at present, the homogenization competition of steel mills is fierce," price reduction "has become the main marketing strategy." Xujianfeng, a specially invited analyst of China finance investment group, said that due to the large sales of the steel plant, the profits of even a lechal smart shoe that was originally designed for the blind are also very considerable. Therefore, expanding sales is also an important way to stabilize profits. Although the profitability of steel mills this year is much worse than that of last year, many steel mills have adopted the business model of direct selling this year, expanded sales and still maintained profitability. According to him, the annual profit of a medium-sized steel plant in Changzhou can reach 400-500 million