Shandong Luli Steel CO.,LTD.

Industry news

Steel trade city witnessed the ups and downs of steel prices

Release date:2017-07-06 15:42:48
Steel industry in five years of the most difficult period, the industry debt over three trillion
From the bustling city to a deserted house, steel trade has witnessed the ups and downs of the steel market.
In mid May, "China business (micro-blog)" reporter in Xi'an's largest steel trading market -- the city supplies the steel market to see, tens of thousands of tons of various types of steel lying quietly in the warehouse. Shanxi, a large steel enterprise production of threaded steel signs, factory date was January 2013, but so far no one is interested, surface rust.
This is a microcosm of the development of China's steel industry. The two quarter was the steel consumption season, but the market is not busy season "-- since February of this year reached high stage, steel prices began to" stumble endlessly "trend, the present situation in the past five years at the bottom.
And steel market downturn, high inventories coexist, but it is record production. According to the latest statistics of the China Steel Association, in late April, the average daily output of crude steel enterprises in the Steel Association grew by 0.77% in the past ten months, and the daily output of crude steel reached 2 million 128 thousand and 700 tons, a record high since the China Steel Association has recorded statistics.
According to the reporter, Xi'an has 3000 steel trading enterprises at most, employing tens of thousands of people. At present, over 80% of traders have changed careers.
Deserted steel trade city
Xi'an has more than 3000 steel trade enterprises at most, and about 80% have changed jobs now.
May 9th, the industry leader Baosteel (600019.SH) lowered the ex factory price of June products, the price of its mainstream products down 150 yuan per ton, ~180 yuan. It is worth noting that this is the first time since October 2012 Baosteel lowered the ex factory price.
Baosteel, as a bellwether of the steel industry, has lowered its factory price for the first time in 9 months, reflecting the pessimistic expectations of the steel market in some ways. Then, Anshan steel, Wuhan steel, Jiangsu iron and steel enterprises, the Yangtze River Shagang were cut to steel prices dropped 40 yuan per ton ~200 yuan.
Lower steel prices, which makes steel traders day more sad.
The reporter saw in Xi'an City, the material of steel market, although such as steel lying in the warehouse, sometimes there is a train to various types of steel Everfount moved into the market. Shops around the clerk playing with mobile phones, long time no guests came to inquire.
"Now sell a ton of steel, you can earn 10 yuan."." May 15th, in the steel market in the long steel group, Xi'an Distribution Department, a sales staff told reporters that the current steel prices than two months ago per ton fell by more than 200 yuan. To 18 mm diameter two grade thread steel, for example, now the price of 3510 yuan / ton, if you open an ordinary invoice, not value-added tax invoices, the price can be reduced by more than 100 yuan.
Such cracks exist in steel trade enterprises are not in the minority, and more traders have been difficult, have closed down, change careers.
Located in the Baqiao District of Xi'an, the East China steel trade town is almost empty, and many rental advertisements are posted on the glass doors. Through the glass door, the reporter saw that the tea set and sofa in the office were covered with dust. It is hard to imagine that Xi'an was once the premier steel trading enterprise.
"All gone, the boss is off the line."." East China Trade City gatekeeper told reporters that the steel trade city, there were more than 170 companies have settled down, are doing steel trade. But since last year, the steel industry continued to slump, steel trade city Fujian Ji boss also decided to withdraw from the steel trade industry. Reporters learned that, at present, the boss is prepared to East China Steel Trade City 1~3 layer shops overall foreign rental, and the remaining several floors ready to decorate the hotel.
And two kilometers away from the Huaxia steel trade city, the same showing a desolate miserable scene. In 2011, China steel trade city has more than 200 enterprises to do steel trade, but now only 10 enterprises are still operating.
"Iron and steel business in Xi'an is 80% people, but these people have the other side." The Chinese steel trade city and one is business owner Lee told reporters, now a month only laisansi single, business deserted to the extreme. Xi'an had at most 3000 steel trading enterprises, employing tens of thousands of people, there are already more than 80% of traders change careers.
Li boss said, engaged in the steel trade industry Fujian boss mostly engaged in such as supermarkets, hotels, commodity agents, etc., in the current iron and steel industry malaise situation, these people will also shift the focus of operation to other industries.
Industry debt over three trillion
At the end of March 2013, total liabilities of 86 key steel enterprises was 2 trillion and 980 billion yuan.
"Why business do not go down, the biggest dilemma is that funds fracture, in fact we eat now or in the last two years ago." Boss Lee told reporters that he signed the list of $about 10000000 in 2012 and a developer, but until the end of the year to take back about 300000 yuan, repeatedly failed to discuss legal procedures, is now.
In order to avoid such a similar situation, Lee boss changed the management idea this year: "do not sign long-term contracts, developers can pay as much cash as possible, only to provide steel.". Once developers appear in arrears with funds, they immediately stop supply.
"Now the banks do not give steel trading business lending, and some enterprises in the bank loans are more" running feet "." Boss Lee said, banks have stopped lending to steel trading business business, financing channel plugging makes most traders have closed down, but are not many bank loans, which is a reason to survive.
Reporters have mastered the data shown as "West."