As the weather in the north gets colder, site buyers are once again breeding a wait-and-see mood. In the face of the sluggish steel market, steel traders are afraid to purchase goods. Steel mills also choose to reduce production and maintenance during the current power cut period, and maintain low inventory to safely pass the low steel market.
The next round of demand is waiting for winter storage. The purchase of construction sites has improved on the last two days of the weekend (October 16-17). Li Mingyi, business manager of Beijing Zhihengda Commerce and Trade Co., Ltd., told the Lange Steel News Center: “We shipped 1800 tons per day for two days last weekend. It may be that the front floor of the construction site is running out of stock. Now it is starting to make up the goods. The purchase volume of the construction site is still not large, and the steel price should be stable this week."
Yu Zhanming, general manager of Beijing Yuyuming Steel Trading Co., Ltd., explained to the author that as the north has entered the late autumn and the weather is getting colder, the current site buyers are beginning to breed a wait-and-see mood.
“The northeast has already started to snow, although it will not have a real impact on the Beijing steel market, but it will affect psychological expectations. Beijing site buyers generally believe that terminal demand will gradually decrease, so most of the steel prices are waiting for further declines. Moreover, the funds of the construction site have been very tight this year, so the construction site has not amplified the purchase volume. Generally, only one or two layers of steel are used in the building at a time." Yu Zhanming said.
Bai Jiandong, sales manager of Taiyuan Yuansheng Material Trade Co., Ltd., also believes that the current terminal demand is gradually shrinking. “Now steel traders and construction sites are in a wait-and-see state.†Bai Jiandong said, “If the snow demand will shrink a lot.â€
Yu Zhanming believes that terminal demand should decline after half a month, and demand should be in a downturn in November. "The main factor affecting demand in the future should be the attitude of steel traders! The demand from November to the end of the year depends on the winter trade plan of steel traders, and the winter reserve will be the rebound opportunity for the next round of steel prices."
Steel mill overhaul prepares for winter storage Due to the power cut policy, the old district of Jinsteel will stop production for one month from today (October 19). Bai Jiandong is an agent of Shanxi Jingang Group. According to his analysis, Jingang’s plan to suspend production in the old district is mainly to use this power cut to reduce production, keep inventory low, and safely pass the current depressed steel market for winter storage. prepare.
Bai Jiandong further explained that although November is the off-season of the steel spot market, it is indeed the peak season for steel mill production, because steel mills need to prepare sufficient supply for the upcoming winter storage in late December and early December. At present, Jinsteel's production reduction is in preparation for full-load production in November. In addition to the current “virtual high†spot price of iron ore, the steel spot market is in a downturn, steel mills are even less willing to produce at full capacity, and try to keep inventory running low. .
It is reported that Jinsteel needs at least 70,000 tons of steel reserves for the winter storage. "When the winter storage, state-owned enterprises generally have to purchase tens of tons of steel, and the agreement households have a fixed amount of agreement, and when they want to buy more goods, they can't get in." Bai Jiandong said.
Bai Jiandong said that the current low-inventory operation of the steel market is broken. He said: "Because we have a quarterly agreement with Jinang, we can flexibly arrange monthly purchases according to market changes. Now everyone has some stock in the hands of steel. In the downturn of the city, not only steel mills keep low inventory, but steel traders are even more afraid to buy goods. We will wait for the winter storage to increase."
The annual winter steel storage price can not exceed 4,000 yuan / ton to have the meaning of winter storage, this year should be no exception. Therefore, Bai Jiandong, Yu Zhanming and other steel traders generally believe that the early stage of winter storage must be the lowest period of steel prices. From November to December, with the gradual waning of terminal demand, steel prices will inevitably fall into the bottom valley, which will be winter storage. The best time.
The next round of demand is waiting for winter storage. The purchase of construction sites has improved on the last two days of the weekend (October 16-17). Li Mingyi, business manager of Beijing Zhihengda Commerce and Trade Co., Ltd., told the Lange Steel News Center: “We shipped 1800 tons per day for two days last weekend. It may be that the front floor of the construction site is running out of stock. Now it is starting to make up the goods. The purchase volume of the construction site is still not large, and the steel price should be stable this week."
Yu Zhanming, general manager of Beijing Yuyuming Steel Trading Co., Ltd., explained to the author that as the north has entered the late autumn and the weather is getting colder, the current site buyers are beginning to breed a wait-and-see mood.
“The northeast has already started to snow, although it will not have a real impact on the Beijing steel market, but it will affect psychological expectations. Beijing site buyers generally believe that terminal demand will gradually decrease, so most of the steel prices are waiting for further declines. Moreover, the funds of the construction site have been very tight this year, so the construction site has not amplified the purchase volume. Generally, only one or two layers of steel are used in the building at a time." Yu Zhanming said.
Bai Jiandong, sales manager of Taiyuan Yuansheng Material Trade Co., Ltd., also believes that the current terminal demand is gradually shrinking. “Now steel traders and construction sites are in a wait-and-see state.†Bai Jiandong said, “If the snow demand will shrink a lot.â€
Yu Zhanming believes that terminal demand should decline after half a month, and demand should be in a downturn in November. "The main factor affecting demand in the future should be the attitude of steel traders! The demand from November to the end of the year depends on the winter trade plan of steel traders, and the winter reserve will be the rebound opportunity for the next round of steel prices."
Steel mill overhaul prepares for winter storage Due to the power cut policy, the old district of Jinsteel will stop production for one month from today (October 19). Bai Jiandong is an agent of Shanxi Jingang Group. According to his analysis, Jingang’s plan to suspend production in the old district is mainly to use this power cut to reduce production, keep inventory low, and safely pass the current depressed steel market for winter storage. prepare.
Bai Jiandong further explained that although November is the off-season of the steel spot market, it is indeed the peak season for steel mill production, because steel mills need to prepare sufficient supply for the upcoming winter storage in late December and early December. At present, Jinsteel's production reduction is in preparation for full-load production in November. In addition to the current “virtual high†spot price of iron ore, the steel spot market is in a downturn, steel mills are even less willing to produce at full capacity, and try to keep inventory running low. .
It is reported that Jinsteel needs at least 70,000 tons of steel reserves for the winter storage. "When the winter storage, state-owned enterprises generally have to purchase tens of tons of steel, and the agreement households have a fixed amount of agreement, and when they want to buy more goods, they can't get in." Bai Jiandong said.
Bai Jiandong said that the current low-inventory operation of the steel market is broken. He said: "Because we have a quarterly agreement with Jinang, we can flexibly arrange monthly purchases according to market changes. Now everyone has some stock in the hands of steel. In the downturn of the city, not only steel mills keep low inventory, but steel traders are even more afraid to buy goods. We will wait for the winter storage to increase."
The annual winter steel storage price can not exceed 4,000 yuan / ton to have the meaning of winter storage, this year should be no exception. Therefore, Bai Jiandong, Yu Zhanming and other steel traders generally believe that the early stage of winter storage must be the lowest period of steel prices. From November to December, with the gradual waning of terminal demand, steel prices will inevitably fall into the bottom valley, which will be winter storage. The best time.
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