stainless steel price decline makes suppliers feel tough

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Fujian steel traders began under Li Guo money, family fled behind, is the stainless steel trade and industry survive the crisis response. Real estate and financial policy, supply and demand contradiction of steel sharp makes the steel trade appeared last year second half of the year long the situation upside down, steel traders collective shouted " vulnerable".
Li Guoqing's run away events, as well as steel trade and industrial capital from the entity economy is free, in 2011 the steel industry trade price, profit hard true portraiture. In 2011, China's steel output of 8.81 tons total, 12.3% continue to maintain high growth, steel production capacity to further focus on the release, while the state downstream estate industry regulation, the decline in exports caused demand atrophy.
As a very strong cyclical industry, policy changes, the contradiction between supply and demand of sharp makes steel trade price continued to slump, and even the emergence of serious upside down during the second half of last year.
Mainly on account of last year the economic situation of the country, including by foreign influence, leading to export orders, most resources are flowing into domestic market. While the state regulation of the real estate leads to user needs to order large quantities of reduction, and last year the cost was very high, for 6 consecutive months clearing price.
The financial aspects of the effects cannot be ignored likewise. Jiangsu Guoxin Logistics Week total analysis of steel enterprise loans last year, the tightening of monetary policy, bank interest costs, acceptance costs are on the rise, the steel trade such a capital-intensive industry, great pressure:
The biggest reason, mainly comes from the surface of the capital. Funds face tight will bring profit rate of decline, the bank 's strong reflected, 20% interest rate loans are still many people who rob.
In Wuxi steel market inventory as an example, by the end of 2008 was about 100000 tons, after the financial crisis in the real estate industry expands stock market expansion began, at the end of 09 to reach about 1000000 tons, up until the mid 2011 to appear inflection point, started to decline, this year the steel trade and industry began overall deficit, deficit range in six into above.
The most serious, steel trade price amplitude reaches a ton of money five hundred or six hundred. That is to say, to sell a ton of steel owes five hundred or six hundred dollars.
Because the specifications are not the same, excluding freight steel factory price average to 4300 yuan a ton. About 100 yuan per ton of freight, total cost 4400. At the end of the year and lost more than 200, not including wages, rent. Rent for one year to 20000. A monthly telephone charges to 1000. I employed 5 people, labor cost per month to more than 2000. Plus steel storage when there is poor quality, a ton will lose five hundred or six hundred.
Not any time loss, but earns compensate losses.
On the loss of pressure, the steel trade enterprises begin to differentiate, a number of small steel trade enterprises carry live, close down in succession. Many private steel traders have a career change. Industry into the enterprise begins to withdraw from the enterprise number less than. As a state-owned company, capital strength, strong ability to withstand risks, but continued losses also let Liu manager looked very helpless.
Smaller ( enterprise to bear this kind of pressure, but will not do it, no way.
In 2012 the situation will how? De novo in two months, steel prices slightly warmer, steel traders began to show a profit, but considering the high last year, does not digest the financing cost, the profit is still a false representation. China Steel Industry Association President Zhu Jimin has said publicly, this year the entire steel industry will still be high cost, high inventory and low price coexist, the director think upstream downturn will continue to test the downstream steel industry:
Iron and steel industry production are still increasing, but the increase and a slowdown in growth. This excess capacity will be transformed into a kind of contradiction of supply and demand, like 08 years of steel price once flushed to more than 6000, then down to more than 3000, it is a rational, objective market, test you? Test your steel traders operating capacity and the person in charge of operating ability.
Hope can let loose some funds, the steel trade breath:
This steel is good or bad, the most crucial factor is capital gold, capital if the relaxation point, on the steel is the largest favorable.
In the profit become increasingly difficult situation, the stainless steel trade enterprises become the boss from the bank finance the springboard, the risk for banks to have how old? How to resolve