Traditional Culture Encyclopedia - Weather inquiry - Why is there a sharp drop in steel prices?

Why is there a sharp drop in steel prices?

I believe many friends are paying attention to some international situations this year. Affected by multiple factors such as the COVID-19 epidemic and geopolitics, international commodity prices continued to rise in the first half of this year. In addition to worrying oil prices, steel prices are also rising.

However, since the beginning of 65438+February, steel prices have started to fall again. Many people in the industry say that now it seems that we may return to the low point of 2008 10, and we may witness history again. So, why is the domestic steel price falling sharply now? Now someone is discussing it on the internet. Congratulations on witnessing history again! Will steel prices fall sharply, or will it "dream back" to June 5438+ 10?

1.The steel price crisis in June 2008 was 5438+ 10.

Before analyzing the reasons, let's take a look at the crisis that happened in June 2008. Maybe many people are very sensitive to 2008. This year, Wenchuan earthquake occurred in China, and 1 Beijing Olympic Games was held. This year, the financial crisis broke out in the international community, and the domestic economic development was also greatly affected.

Many scholars call the subprime mortgage crisis that broke out in June, 5438+October, 20081October the financial tsunami, and almost every country participating in economic globalization in the world can't be immune to it. As one of the important developing countries, China has also been affected by the subprime mortgage crisis and economic crisis.

Since June 3, 65438 10, steel prices have been falling continuously. After just half a month, domestic steel prices fell to an unprecedented low. According to the statistical results of relevant institutions, in June 65438+1October 65438+July 2008, the filing price of rebar was only 353 1 yuan per ton. At first, it was an unimaginable price.

Affected by this, the business of the steel industry has also been greatly impacted. In this case, many steel enterprises went bankrupt. Many people engaged in the steel business eventually lost everything. So that for a long time after 2008, not many people dared to set foot in the steel industry easily.

But not long after, such a crisis was lifted. But people never imagined that this scene would be staged again in 2022. Since July this year, domestic steel prices have been falling.

Second, the steel price crisis reappeared in 2022.

According to the statistics of relevant institutions, up to now, the domestic rebar price is 3589 yuan per ton, down 14.95% year-on-year. The quotation based on steel is 3576 yuan per ton, down 15.2% year-on-year. Perhaps at first glance, the proportion of decline is not as high as we thought, but the business of the steel industry itself is not too high profit margin. The decline rate reached 15%, which is already the call of the crisis.

Not only that, steel prices are still falling. In order to maintain sales, some steel mills even directly reduced the price of steel to 3400 yuan per ton. This price is lower than that in 2008. But even so, the business of these steel mills is still not good. Even if we take the initiative to reduce prices and give up profit margins, it will be equally difficult to sell our products. So, how did the current price dilemma of steel products in China come about?

Third, the reasons for the continuous decline in steel prices

First of all, the most fundamental reason is that the real estate industry is cold, which makes the market demand for steel drop sharply. As the real estate industry entered an unprecedented winter, many real estate developers temporarily stopped building houses in order to consume inventory. In this case, it is naturally unnecessary to use a lot of steel.

However, the information between steel mills and real estate developers is not equal. At the beginning of this year, major steel mills were still producing a large number of steel products. Even some steel mills have deliberately increased their output. Under such circumstances, steel mills will naturally face the dilemma of oversupply. If we don't lower the selling price, it will be difficult to consume so much inventory. Therefore, steel prices in the market will continue to fall.

The second is affected by the weather. Compared with previous years, the temperature has increased this summer. In the face of continuous high temperature weather, construction sites in many places have to be temporarily suspended. Under such circumstances, the progress of the project can't continue to move forward, and naturally there is no need to buy steel.

Finally, it is affected by repeated epidemics. Since the outbreak of new coronary pneumonia, the business of many industries has been greatly affected. The same is true of the business in the steel industry, but the impact of the epidemic on the decline in steel prices is not direct, but indirect.

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In a word, business in the steel industry is not good recently. Faced with the continuous decline in steel prices, employees in related industries also need to make corresponding psychological preparations. But at the same time, we should also have hope for the future and believe that this crisis will be solved soon.