Hardware raw materials: steel prices staged "Waterloo" turnover is lukewarm

According to the usual practice, in the first month, companies started to work one after another, which will also lead the steel market to pick up gradually. Prices will rise and usher in the sales season. However, in the face of a steel market that fell and fell again this year, and even fell to the “3 times”, the steel traders in the stainless steel sheet market of Chi Ying Tin Tin Co., Ltd. were in a dilemma. They felt that “Yali pear” was very big and they were very anxious.

Industry insiders believe that the appearance of “Waterloo” on steel prices is an “evidence” for multi-factor accumulation and downward price.

Priceless and non-market steel market, few people care about the news on the 7th, the reporter went into the Zhiying Tianxing stainless steel sheet metal market, the market is very deserted, look at the entire market, few people who buy materials out, long empty aisles, saw a few Businesses in the bow to sort out the steel, more is idle to several businesses gathered together to play cards, and storefronts can be extremely bleak, even desolate.

Before the booth No. 35, the reporter saw Lu Yinyuan, who was inexperienced with embarrassment. He just asked him how this year’s steel market and the sentient Lu Yinyuan talked: “Since September last year, the steel market has been sluggish. The price has dropped to less than 3,900 yuan per ton, but it is still no one to buy, and now is the decline in steel prices fell, this priceless market awkward situation, we these businesses really do not know how to go."

"Compared with the same period last year, the price difference?" The reporter asked. "At the same time last year, it was maintained at around 4,300 yuan per ton, which is almost the same as this year's price of nearly 400 yuan. Now that we have entered the "3 era," our profits have become more meager, and I think the next situation is not optimistic." Yinyuan said.

Trade margins only 1-2%

Business income is sometimes not as good as the employee Lu Yinyuan feels helpless, and now the market turnover is lukewarm, although the price dropped to the bottom line, the purchase price of 3700 yuan per ton of steel, only bid price to 3900 yuan, a total of 200 yuan less than the gross profit, remove With regard to rents, labor costs and other expenses, sometimes a ton of steel is sold, and only about 50 yuan is actually accounted for, and trade margins are floating between 1% and 2%.

With less profit, the wages of releasable workers are increasing year by year. Compared with last year, the wages of this year have risen by 10%. “Now that the workers who handle loading and unloading for my family are 90 yuan a day, even if they only helped me to load and unload on the same day, the workers also received 90 yuan, and we may also have no sales for a day or only sell one or two tons. This is very unusual. In contrast, our business is not as good as a laborer, at least we have to take certain risks, but the wages of workers are stable." Lu Yinyuan shook his head and sighed.

“Yes, the annual rent of a booth is more than 30,000 yuan, which is equivalent to nearly a hundred dollars a day. If you come across a customer who has a credit, our meager profits will come out and pay a part of the interest. Profits can be said.” No. 185 stall owner Luo Xinwang repeatedly echoed, in the face of the falling winds that the steel market blew up, now he wanted the demand to be released, and he felt that he had become a luxury. The continued decline in steel prices has left businesses with no escape route. The only thing that can be done now is to wait for the opportunity and pray that the steel market will not add any additional variables.

"My family is now selling last year's inventory. This kind of situation is not dare to purchase. Compared with previous years, when a lot of inventory is needed and the sales season is ready for sales, it's just a matter of days." "There are still some stocks in my family. 5200 yuan per ton to buy, I did not expect the price will fall into this, can not afford to hurt ah." "Not to say anything else, the purchase price of recycled scrap from the original 3500 yuan per ton, down to today's 2900 yuan The difference of 600 yuan, before this is also a profit ah, now all the world has evaporated." Each stall owner spit up bitter water.

More than 20 booths closed behind the door. Thanks to the announcement of transfer, the backlog of stocks on one side, the shortage of funds and rising costs, and the difficult business, made stallholders face a severe test. Many stall owners have no power to support. They have to shut down at home and quietly past the transfer announcement. In the Zhiying Tianxing stainless steel sheet Iron market, there were more than 200 booths in total. The reporter turned a round. According to rough statistics, there are no less than 20 booths locked on the door.

“There is no way to do this, this business is really bad. Not only the booths that are transferred here are more, we have more than 1,700 stalls in the entire Chi Ying Steel Market, including Chiayi's production materials market and Nanxi Steel Market. The Lord also made a rough calculation. At present, no fewer than 100 companies are planning to transfer.” Subsequently, Luo Xinwang analyzed the main reason. “The impact of the European debt crisis affects many manufacturers’ sales to Europe and the United States and other places, as well as this year’s sales. The start-up of various companies was also particularly late. Some companies themselves were full of people, but the supporting manufacturers were unable to produce normally due to shortages of workers. Therefore, they indirectly led to the unsatisfactory sales of our steel products."

“The degree of prosperity of the steel industry and construction industry is highly correlated. Real estate regulation and control is also a major factor affecting the steel market's prosperity. The more recent rains affect the normal construction of the construction industry, which will not be able to drive the market.” Lu Yinyuan said. "In the depressed market, many stall owners also have business to do, and disorderly low-cost competition has lowered overall profits. It is hoped that industry associations will be able to rectify them and standardize them, otherwise they will also constrain the development of the industry."