Steel City will not be optimistic next year

“The low price of winter storage years ago and gradually pushed up after years” is a model that the steel trade industry has used for many years. However, due to the bleak market environment in the past two years, the Dongkuo has become a “bubble”. Yesterday, the reporter learned from a number of steel traders and traders that because of the unclear market prospects and unusually difficult **, this year a large number of steel traders once again chose to abandon their winter storage. This is likely to be buried in the spring of next year, the poor sales of the steel market.

It is understood that from November to next March, all belong to the off-season of the construction steel market. The cold weather in the north in winter has led to a decrease in construction site construction and steel sales. Steel traders will pick up low-priced goods and look forward to returning to work after the spring to resume steel prices. However, a Beijing steel trader told the reporter that compared with last year, more steel traders will not consider winter storage this year.

Regarding Dongchu, a relevant person in charge of a steel trading company in Zhejiang had calculated an account, if considering the factors such as freight, storage costs and bank interest, unless the rebound after the Spring Festival per 100 tons of steel traders have a good profit more than 100 yuan . However, the current market trend is unlikely.

In addition to not be optimistic about the market outlook, more steel traders are helpless to tell reporters that this year to give up the winter storage is not because of the complete loss of confidence in steel prices next year, but a serious shortage of funds. Wang Dejin, general manager of Jintuo Jianye, said in an interview: “I predict that there will be a certain rise in the steel market next spring, but because banks have classified steel trade as a risk industry, tightening lending has caused steel traders to suffer. The capital chain is in a difficult situation and is forced to abandon the stock."

It is worth noting that steel traders' rejection of winter reserves may further cast a shadow on the outlook for the steel market next year.