Commodity avalanche steel price fell into the bottomless hole steel enterprise capital chain blood loss

Abstract Since the financial crisis in 2008, the domestic commodity market has not experienced such a large-scale, "avalanche" type of collapse in the near future. The commodities represented by gold, crude oil and copper all went down, and agricultural products such as corn and soybeans were created...
Since the financial crisis in 2008, the domestic commodity market has not had such a large-scale, "avalanche" type of collapse in the near future. The commodities represented by gold, crude oil and copper all went down. The agricultural products such as corn and soybeans hit a new low in the past four or five years. The ferrous metals such as rebar, iron ore and coke futures continued to rise to new lows. Caused a negative impact.

Spot price of steel fell into the bottomless pit

In recent years, “stable” has fallen, and the price of steel, which is cheaper than the cabbage in the market, has been the focus of hot discussion, and the decline in the past month has made market investors feel as if they have fallen into the bottomless pit.

Looking back at the recent round of steel price plunging: On August 20th, it fell below the 3,000 yuan/ton integer mark into the "2" era, and then it fell into a cliff-like decline. One after another, the long-selling funds were ruthlessly harvested, the most panic. When the day was sealed on the daily limit, the lowest price of the main contract has been closed at 2,600 yuan / ton, which is less than 1.3 yuan per kilogram. It must be mentioned that the price of steel was once above 5,000 yuan/ton a few years ago, and now the price is almost waist-high.

The futures market is so fierce, the spot market is naturally not spared. The spot price of rebar in Beijing and Tianjin has fallen below the 2,700 yuan mark. More importantly, the price has plummeted, and the market transactions have also become more and more ruthless. Some analysts pointed out that the current market is generally tight, and the steel market is inevitable. Both steel mills and steel traders have the willingness to step up their shipments before the National Day, which is a direct factor in the increase in steel prices. .

Steel terminal demand is hard to see

In recent years, the continuous expansion of China's steel production capacity has led to a serious oversupply of varieties and production capacity, the expected slowdown in China's economic growth and the oversupply crisis caused by the decline in real estate demand, resulting in poor demand for steel terminals. According to the latest announcement of the daily output of crude steel of key enterprises in mid-September, the inventory of steel enterprises rose by 762,000 tons, up 5.03% from the previous month, which also highlighted the current poor demand in the steel market. Overall, market confidence has fallen, and downstream demand has a strong wait-and-see atmosphere.

In terms of inventory, the pressure on steel companies is still relatively high. In mid-September, the stock of key steel enterprises in the end of the year was 15.789 million tons, up 5.03% from the previous month. Last week, the decline in social stocks increased. On the one hand, the centralized procurement in the downstream of the week led to the transfer of stocks downstream. On the other hand, after the traders’ attitudes were reconsidered, they continued to increase their shipments to keep stocks low.

In addition, the current daily output of crude steel is still at a high level and will slow down in the future. Wang Xiaoqi, vice president of China Iron and Steel Association, said at the industry conference on the 25th that "China's crude steel output this year is expected to reach 826 million tons, which will be 6% higher than that of 2013. The growth rate is lower than last year's 7.5%. China August The apparent consumption of steel has shrunk by nearly 2%. Due to the slowdown in economic and reconstruction activities, output may also slow down during the rest of the year."

Steel enterprise capital chain blood loss problem continues to ferment

The iron and steel giant with assets of 100 billion yuan, the steel company's financial difficulties, is causing the steel industry's funding problems to continue to ferment, resulting in aggravated market pessimism, adding to the worse.

In recent years, both steel mills and steel traders have encountered more or less the problem of financial pressure. This year, Shanxi Haixin Iron and Steel entered a state of suspension due to financial problems, and the steel industry is paying a price for its rapid development in the past few years. In the face of tight capital situation, steel traders need less orders, fast turnover, steel prices are difficult to pull up the momentum, and steel mills also face serious financial pressure, in order to attract traders to order, turnover funds, prices are difficult to raise.

According to the China Economic Net reporter, due to the recent sharp decline in steel prices, the overall inventory consumption rate is slowing down. The trading situation has made the manufacturers miserable, unable to withstand the rapid decline in prices and the steel traders who are closing their doors are everywhere. However, private steel enterprises that have fallen into the dilemma of the capital chain are also in the minority.

Iron ore price collapse is difficult to pull steel companies out of the quagmire

Iron ore prices have also been falling in the fall while steel prices have fallen. According to the Wall Street Journal, international iron ore prices have fallen 41% this year, mainly due to the surge in Australian-led production. Get into a serious oversupply.

The fall in iron ore prices has led to a decline in the production costs of domestic steel mills. Steel mills have relatively abundant funds and the amount of financing will decrease accordingly. According to the China Economic Net reporter, the current domestic steel industry regulation is not as good as expected. At this time, the price reduction of iron ore has caused some overcapacity steel enterprises to see the dawn. In view of the current low market position, large steel mills are unlikely to resume large-scale production. Therefore, the sharp drop in iron ore prices may be an opportunity for small and medium-sized steel companies.

Despite the decline in production costs, the overall profit level of Chinese steel enterprises has risen sharply year-on-year. However, under the influence of the real estate market recession, the steel enterprise sales situation has not improved significantly. Recently, the slightly pessimistic macro data has been announced, which has aggravated the steel market. The mood, the sharp drop in iron ore prices is difficult to pull Chinese steel companies out of the quagmire.

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