The price of carbon steel flanged pipe fittings and valves has been greatly reduced by 15%
Since September, The prices of steel in china have been falling for several weeks, but so far, the market has not seen a reversal. Last week, under the background of the continued tightening of funds and the sluggish demand in the steel market, major steel varieties such as domestic construction steel, hot-rolled, medium plate, and profiles have fallen sharply. Especially the construction steel price, the current construction steel price has dropped by more than 100 yuan, and the average price has dropped by about 150 yuan; the mentality of the merchants has weakened collectively. At the same time, the National Day holiday is coming soon. In order to avoid the holiday risk, merchants have a heavier psychology of cashing out. Steel prices are expected to drop further this week.
[The main reason is that the price of steel in China has fallen very sharply]
Beginning in March 2022, the epidemic has started to break out in various parts of China, the demand and production of steel have plummeted, investment, consumption, and exports have all been significantly impacted, and short-term unemployment has risen and prices have risen. The prevention and control of the epidemic requires the population to avoid large-scale movements and gatherings, and to isolate and control the epidemic, thus greatly reducing consumer demand. Workers have returned to cities, factories have been delayed in resumption, companies have shut down and reduced production, and investment in manufacturing, real estate, and infrastructure has basically stagnated in the short term.
In particular, investment in domestic real estate, railway, machinery and other industries is still slowing down, and steel demand is weak. In terms of commercial housing, judging from the survey data, in September, the sales of the national property market again experienced a significant decline. According to statistics, the average weekly sales of new homes in major cities across the country have dropped by 25% month-on-month since September. Among them, the first-tier cities fell by 31%, the second-tier cities fell by 22%, and the third-tier cities fell by 23%. Under the condition that the housing control policy is still strict, the sluggish commercial housing sales market has led to a decline in steel demand.
The situation of domestic capital shortage has always existed, and the global economic environment is extremely unstable. Investors have become extremely cautious about market investment. Nowadays, businesses of all sizes in the market are stretched thin, and many housing construction projects have appeared. phenomenon of shutdown. Under the coercion of shortage of funds and weak demand, in the short term, merchants are more willing to cash out. Based on this, it is estimated that the domestic steel price trend in the second half of the year will continue to show a downward trend.
Finally, there is inventory pressure. According to the inventory statistics of China Iron and Steel Spot Network on the 18th, at present, the total inventory of construction steel in major domestic cities is 6.9786 million tons, an increase of 204,700 tons from the previous month, of which the inventory of rebar increased by 125,000 tons and the inventory of wire rods increased by 79,700 tons. The data pointed out that the total domestic construction steel inventory has risen for 4 consecutive weeks, and from the perspective of crude steel daily output in early September, it has reached 1.964 million tons, an increase of 3.1% month-on-month. Under the influence of the continuous reduction in downstream demand and the increase in production, the inventory of the steel market continued to rise, and panic caused steel traders to enter a state of decline in advance. In order to avoid excessive losses, merchants were eager to ship.