After the rapid rise, the recent rapid decline in steel prices again. Many people in the trade to the "Daily Economic News" reporter, said steel prices in the pre-holiday, there should be some room for downward adjustment, but the basic part of the vulnerable lower, roughly 50 ~ 100 yuan / ton range.

Steel prices callback, declaring before the iron ore cost-push price increases come to an end. Due to shrinking demand, high inventories, and policy uncertainties, the industry believes that the recent short-term adjustment will be steel "theme."

However, in Chengdu and other places, many traders bullish Festival prices, taking advantage of steel fell busy accumulating inventory.

Continuous growth in steel inventories decline

As of yesterday (January 25), Tangshan Iron and Steel varieties more than the price of a week declined by 20 ~ 50 yuan / ton. Overall, the market short-term decline in Tangshan suspended, but it is still hard stabilized.

Tang and Song of steel provided by the Economic Research data show that demand is shrinking, Tangshan straight seam tube four main duct finished goods inventory of 6.1 million tons in Tianjin, the leading coil 10 inventories of finished goods nearly 4 million tons of steel stocks nearly 2 to individual manufacturers million tons.

"Tianjin Pipe manufacturers cut more, other parts of control plants, cold-belting factory has done more in orders ahead of a holiday, so that a large number of effective demand for the downstream strip contraction." Ruifeng Iron & Steel Group insider told reporters.

According to incomplete statistics, China's steel industry, network, in China's steel (4265, -15.00, -0.35%), total inventory (including steel, social and terminal volume) close to 1 million tons, a continuous growth of 9 Zhou Zheng.

It is reported that the fall in stocks prompted the manufacturers were forced to cut the operating rate, which, adjusting billet rolling line, the biggest drop in capacity utilization, particularly in Beijing and Tianjin highest in the region, the maximum decrease of 21%.

"Cost factors are no longer the main factor influencing the market supply and demand situation, or will once again become the key to determine price trends." China Iron and Steel Industry Net Yin Ji-mei, chief analyst, said.

But the domestic iron and steel ZHU Xi-An advisory body to mysteel analysts have different views. "At present, the main factors affecting price movements, also the macro policy level, including the iron ore negotiations." ZHU Xi-an that the shrinking demand at most played a "hit the" role.

ZHU Xi-An explained that the financial regulatory authorities were concerned about the high inventory of iron and steel enterprises. In other words, iron and steel industry has been included in this year, the focus of control of bank credit. Thus, in addition to the rising cost of funds, the steel industry before the easy credit conditions may also change.

Bullish traders to hoard goods in Chengdu Festival

If we have more of steel delivered, which moved from a point location where to store it? It became very worried about the young little dry issue.

Yesterday, in Chengdu, Western Union Iron and Steel logistics in a warehouse in Hong Kong, small dry busy directing the transfer handlebar tray piled up in warehouses outside the circle (the construction of a steel) transferred to the warehouse where weighing store. As the remaining warehouse space has been limited, he was worried that if the warehouse outside the circular disk transfer all come in, I really do not know how to put.

Worked in a small dry iron and steel, Sichuan, China Steel Corporation, he was admitted, and now inventory is very high. Company stocks more than 200 wagons, each wagon about 60 tons. Now the market is still down in price, so not much shipping. We hoard goods is to be able to have a good post-holiday price.

A small dry warehouse is where the company uses Western Union Chengdu Iron and Steel Logistics Hong Kong, one of the larger warehouse. Chengdu, Western Union Steel logistics staff of one, in addition to the steel steel, other companies are accumulating inventory. A-DATA, Kunming Iron and Steel, Water Steel, Handan Iron and Steel and other large and small companies, are no buyers, so now they are in the purchase, less shipping, warehouses have been no less than the heap, and a lot of steel had to be placed outside the Treasury.

Widely spread in Chengdu, Chengdu, steel stocks have been or are currently 30 million tons. Although exact statistics are not yet released an official agency or industry association, but the Association of Sichuan Province, Li Jian, the circulation of steel that the stock should be at least more than 20 million tons.