Steel price inflection point does not appear and still does not have rising conditions

According to the monitoring data of relevant institutions, the total inventory of construction steel in major cities in China is 8,755,600 tons, which is 30,600 tons less than last weekend, and the lightening margin is 0.35%. This is the first 18 weeks of domestic construction steel inventory reduction, the longest inventory The cycle is down, but the rate of lightening is significantly slowed down. The social inventory of the five major steel products (rebar, wire, hot rolled coil, cold rolled coil and plate) in 26 major markets nationwide was 15.427 million tons, down 11,000 tons from the previous week, and the stock was 18 consecutive. Week falls. Since the beginning of this year, the domestic steel market has continued to decline in inventory for more than four months. It has been a long time and is rare in recent years. Then, the long-term reduction of steel stocks reflects the deep-seated problems? In the interview, some steel trade enterprises said that the current social stock of steel continues to decline, but this does not mean that demand is growing. The steel market will pick up and steel prices will rise. Don't be fooled by the "illusion" of the decline in the social stock of steel. The reduction in the social stock of steel is only the transfer of stocks. The amount of social stocks is small, and the inventory of steel mills has increased. Some steel trade company bosses said that steel prices have been "upside down" for a long time, and traders are afraid to place orders. The more orders you order, the more you lose. "The market is sluggish, the cost is high, the price is upside down, and the warehouse is looking for death!" The general manager of a steel trade company told reporters that his company originally ordered 20,000 tons from the steel mill every month, and now cuts to three or four thousand tons, stock The amount has dropped from 20,000 to 30,000 tons in the past to less than 5,000 tons. He bluntly said that the stock reduction was drastically reduced in order to reduce operating costs, because the current financing cost is too high. If one ton of steel is placed in the warehouse, it will not be sold in one month, and the loan interest paid to the bank will be 70 yuan to 80 yuan. However, the current sale of one ton of steel also does not make so much money, only compressing the inventory and reducing the capital occupation. Judging from the situation that the reporter learned in the interview, the current steel trade enterprises are greatly reducing the order to the steel mills, the decline is generally more than 50%, and some even reach 70% to 80%, which leads to the inventory of steel traders. Continue to reduce, some steel trade companies are even "zero inventory", customers need steel, just "moving goods" in the market, earning labor costs. In a steel spot market, the reporter saw that there are only three or four specifications for the rebar available for sale at the steel trade company, and the high line has only one specification. A salesperson of a company told reporters that "the market is not good, the boss is afraid to order more, and is afraid of being stuck." The demand for downstream terminals is not strong, but the output of steel mills is still growing, while the steel stocks of steel are falling for 18 consecutive weeks, then steel Where have you been? In fact, most of the steel is backlogged in steel mills, and the decline in social stocks for 18 consecutive weeks is only the appearance of steel being transferred from steel traders to steel mills. Some insiders analyzed that “the current inventory pressure of steel mills is higher than the pressure of social stocks.” In order to attract steel traders to order, steel mills have recently lowered their ex-factory prices, including the July steel ex-factory price policy issued by a group of large steel companies. It was unveiled with a "fall", and the decline was not small. The ex-factory price of hot and cold rolled sheets fell by RMB 100/ton to RMB 300/ton.
According to some steel trade company operators, in addition to the price of "light drop", steel mills also give steel traders a lot of "preferential policies", as long as the cash payment, the ex-factory price of steel is very low; some steel traders said Now, if the steel is sold, it will not make money. The steel mills will give them a policy of maintaining value. If they sell, they will not have to worry about losses. Steel mills continue to lower the ex-factory price, giving various preferential treatments to steel trade enterprises, and even holding value-for-money sales. All this is to speed up the process of “destocking” and reduce the inventory pressure of steel mills. Then, the social inventories of steel products have been declining for 18 months. Does it mean that steel prices have turned inflection points and rebounded sharply? In this regard, the industry pointed out: "In early June, the steel stocks of key enterprises were 11.51 million tons, The previous period increased by 0.14%, an increase of 34.5% compared with the beginning of the year. It is worth noting that in the process of transferring steel mill inventory to social stocks in the later stage, it may trigger the risk of further price cuts.” Some operators believe that “steel mill inventory pressure is higher than The phenomenon of social inventory pressure is not normal, indicating that the “reservoir” in the field of steel circulation has become smaller and the function has been weakened. This should also cause reflections from steel companies. The function of “reservoir” in the field of steel circulation is reflected in the allocation of resources and adjustment of surplus, so the circulation area must maintain a certain amount of inventory. In general, the inventory of steel in the circulation area should be greater than the inventory of the steel mill. In addition to direct sales, steel products produced by steel mills should flow to the circulation field, that is, in the hands of steel trade enterprises scattered around the country, and enter the “reservoir” to prevent “drought”. From the perspective of the function of the “reservoir” of the steel trade industry, the inventory of steel should be concentrated in the circulation field, rather than the backlog of steel mills. Some steel traders realize that for the current 18-week decline in steel stocks, they must understand correctly and comprehensively, and grasp the deep-seated reasons, rather than being misled by the illusion of the surface. Judging from the current demand situation of downstream terminals, the shrinking trend is still going on, especially nowadays, it has entered the rainy season. Recently, in the southern region and other cities in China, heavy rains and heavy rains have been exerted, construction construction has been greatly affected, and transportation is not smooth. As a result, the steel market transactions are very light; moreover, nowadays, the mid-year loan repayment period, the contradiction of the phased tension of the steel trade enterprises is highlighted, and it is not ruled out that the return of the capital merchants will reduce the price, thus curbing the rebound of steel prices. In addition, a number of steel companies in the early maintenance of equipment have resumed production, production capacity was released again, the average daily output of crude steel in the first half of June rose back to 2 million tons. However, the power gap in this summer has narrowed significantly. The impact of steel production in the later period may also be significantly reduced. The economic growth has not yet shown signs of stabilization and rebound. In the later period, the oversupply of steel is still difficult to improve significantly, and the possibility of passive increase in inventory is increasing. . It can be seen that although the social inventories of steel products continue to decline, but the overall domestic steel inventories are high, the downstream terminal demand is shrinking, and the steel mills have not significantly reduced production, the steel price inflection point will not appear, and the conditions for the steel price increase are still Do not have.

This type of Welded Wire Mesh is first welded using black wire or galvanized wire to form the mesh and then processed with thermal dipped PVC/Vinyl coating. Plastic material is a better way to keep moisture and air from steel rusting. By covering every part of the welded wire mesh with PVC layer, there is not any exposure to the environment, it will last much longer. The PVC material we use is UV resistance and wide temperature range and has good anti-aging property.

 

Materials:

1.Iron Wire 2.Redrawing wire 3.Electro galvanized  Wire 4.Hot-dipped galvanized wire 5.Stainless steel wire

Specification:

1.Gauge:#12--#24
2.Mesh:1/4",3/8",5/8",1/2",3/4",1" to 6" 
3.length:0.5-30m  width:0.5-2.0m

Color:green,blue,yellow,white,black and so on

Feature:corrosion resistant,beautiful,long time to serve our life

Application:construction,building,wire panel,Fence netting and so on.

 

 

General Specification Table for reference

 

  Wire diameter

  Mesh ( inch)

  23Gauge

 1/4" x 1/4"

  19Guage

 1/2" x 1/2"

  16Guage

 1/2" x 1/2", 1/2" x 1", 1" x 1", 3" x 2"

  14Guage

 3/4" x 3/4", 1" x 1", 1" x 2", 2" x 2", 4" x 4"

  12-1/2Guage

 1" x 1", 1" x 2", 2" x 2", 2" x 4"

  11Guage

 2" x 4", 3" x 3"

  10-1/2Guage

 2" x 2", 4" x 4"

 Coated Welded Wire Mesh

 

PVC/Vinyl Coated Welded Wire Mesh

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Anping Enzar Metal Products Co.,Ltd. , http://www.enzarmetal.com