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Steel traders give up this winter reserve plan
Since entering 2012, neither the steel mill price adjustment nor the macro interest has failed to change the steel market downturn. Due to poor demand and market sluggishness, steel traders (hereinafter referred to as “steel tradersâ€) have no choice but to go ahead of previous years. Last week, the steel market turnover has almost returned to zero. At the same time, due to the fact that the market is still not optimistic after the Spring Festival, the steel traders winter storage plan is basically blown up. Steel traders suddenly left the market early. The reporter learned from the industry organization "My Steel" network yesterday that many steel traders in the Yangtze River Delta region have been closed since the New Year's Day. As of the 10th of this month, the steel market "people go to the building" The phenomenon is very common. Even if some businesses stick to their posts, the focus of their work is shifted to subsequent summaries and returns. “Winter is the traditional off-season of construction steel. This year, due to policy regulation and the overall economic environment, it is even more faint. As the cold weather in the steel market is blowing, the price of steel is falling, the price of steel is falling all the way, and end-users are purchasing. The lack of will, steel traders bleak business. As the Spring Festival approached, traders have long been unwilling to fight, have closed the market. Affected by this, last week, steel prices continued to decline, of which cold rolling, wire and plate have hit a new low in the year." "My Steel" network analyst introduced. It is predicted that next week will be the Spring Festival holiday, and most of the steel traders who have reached the end are mostly due to more inventory and tight funds. Therefore, they will pay close attention to the last few trading days, so the last week before the festival (16th) -20 days) Steel market quotations will continue to fall. It is also worth noting that collectively abandoning the winter storage plan is that in the past years, there was generally a scene of steel “premature winter storage, gradually risingâ€, but this year, due to the bleak market environment, the winter storage has become a “bubbleâ€. “With the lack of support for real demand and the lack of intermediate demand, steel traders are cautious about the attitude of winter storage.†A steel trader told reporters. In fact, since the end of last year, domestic steel prices have been running low and downstream demand is negative. In this environment, steel traders are more conservative than in previous years, and their capital costs are high, which seriously affects the enthusiasm of stocks before the holiday. Merchants are still mainly shipping, and there are few purchases. "In fact, the trader's mentality is always in a tangled relationship. In the end, it is difficult to grasp whether to enter the winter storage of steel and when to start winter storage." A steel trader who did not want to be named in Beijing said. The industry generally believes that this year's winter storage will be aborted in the strong wait-and-see mood of steel traders. After the first quarter, it is expected to warm up . The steel market before the Spring Festival has been sluggish. Many steel companies and steel traders are expecting a change in the post-holiday market. However, in response to this good wish, the above analysts pointed out that in the short term, the steel market is difficult to change; in the long run, the steel market will really pick up or wait until the first quarter. From the perspective of steel enterprises, last week's China Steel Association data showed that the average daily output of crude steel in the late December 2011 was 1.6624 million tons, a decrease of -2.38% from the previous month, which was the lowest output in the same period of the year. The February ex-factory prices of Baosteel, Anshan Iron and Steel and Wuhan Iron and Steel are basically flat, which shows that they are not optimistic about the post-holiday market. In this case, industry experts recommend that steel companies can take modest production cuts.