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There is limited space for the price of screw steel to fall when winter storage starts
【Time:2020-01-03 09:50】 【Traffic:

 In December 2019, the average price of screw steel benchmark was 3889 yuan / ton, down 51 yuan / ton, or 1.29% compared with the average price last month. However, from the perspective of individual regions, the decline of individual regions is relatively large, reaching more than 3%. Analysts pointed out that there are three main reasons behind this performance; with the start of winter storage, there is limited space for the price drop of construction steel including screw steel in January 2020.

 
 
 
Analysts believe that in December 2019, the main reasons for the decline in the price of screw steel are as follows: first, in December, the profit per ton of steel for steel enterprises was fair, the production enthusiasm was high, and the supply of resources increased, which led to the increase of social inventory and steel factory inventory again, and the phenomenon of stock accumulation; second, after entering December, the market demand began to decline sharply, and most of the construction sites in the north gradually stopped The strength of receiving goods in the lower reaches of the industry and industry is weakened, and the market transaction performance is poor, so it is difficult to quickly consume steel mills and social stocks; finally, the screw steel futures maintain a fluctuating upward trend, but because the period basis is large, and the spot demand is poor, the basis is repaired by falling.
 
 
 
In the short term, due to the influence of the stable price of raw materials, the gross profit per ton of steel in steel enterprises decreased slightly. In addition, due to the influence of the heating season policy, steel enterprises maintained their current production status before the Spring Festival. However, in January, the construction site operating rate dropped significantly, and the turnover gradually reduced. After the last ten days, the market is basically in the off-market stage, and the market turnover is basically zero. However, at present, winter storage is the main thing, steel enterprises are actively pricing, and the merchants intend to stabilize the price after replenishing the warehouse.
 
 
 
"On the whole, based on the analysis of supply, demand and futures, the price of construction steel in January presents a narrow range of volatility trend, with limited space for the overall up and down direction, or around 50 yuan / ton." Analysts said.
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