Big. The steel market may suffer another financial crisis. Source: September 29, 2011 08:20:13 Building materials inventories continue to rise. Domestic construction steel inventories have risen for five consecutive weeks, and the pressure of oversupply in the market has increased significantly. At the same time, steel futures prices hit a new low since late November last year. It also has a large negative impact on the spot market trend. The steel price fell due to negative news, and the steel market may suffer another financial crisis. According to data, in the past week, domestic spot steel prices fell sharply, and panic spread in the market. Analysts believe that "the recent international macro-environment faced by the domestic steel market is worrying, and its impact on steel prices has even exceeded the fundamentals of supply and demand. The debt problems of the United States and Europe have worsened again, the U.S. dollar index has surged, and global stock markets and commodities have generally The market situation is very similar to that of the 2008 financial tsunami.” Data shows that steel prices in Shanghai have accelerated, with prices falling by 70 yuan/ton in a single week, and were reported to be 4,700 yuan/ton as of September 23; steel prices in Beijing have fallen sharply. , as of September 23, it was reported at 4,840 yuan/ton, and the price dropped by 140 yuan/ton in a single week; steel prices in Guangzhou fell significantly, and as of September 23, it was reported at 5,060 yuan/ton, and the price fell by 50 yuan/ton in a single week. With the accelerated decline in market prices, domestic steel mill prices have also been reduced across the board last week. Some steel mills have lowered their ex-factory prices 3-4 times within a week. There are many steel mills that have made cumulative price reductions of more than 100 yuan/ton. However, judging from the price policies of the leading steel mills in East China in the second half of the year, Shagang, Yonggang, and Zhongtian only reduced the ex-factory prices of wire rod and rebar by 40-70 yuan/ton, which was obviously lower than market expectations. Fortunately, most steel mills have The difference in the early contract was compensated, which appropriately reduced the merchant's losses. At present, the price inversion between the prices of leading steel mills in East China and the market price is still relatively large, and steel mill prices will still face greater downward pressure in the future. Building materials inventories continue to rise. Domestic construction steel inventories have risen for five consecutive weeks, and the pressure of oversupply in the market has increased significantly. At the same time, steel futures prices hit a new low since late November last year. It also has a large negative impact on the spot market trend. In addition, funding issues have attracted more attention recently. The monthly discount rate for large-amount bank acceptance bills in Shanghai soared to 11.31‰ on September 19, a significant increase of 31.82% from 8.58‰ on September 9, setting a new historical high. Recently, news of mysterious disappearances of borrowers have been breaking out in the market. The private lending industry chain is facing collapse. People in the domestic steel market are also panicked, and the mentality of merchants is generally unstable. Entering the last week before the National Day, steel mills will inevitably cut prices in order to seek orders. Traders will focus on shipments to avoid post-holiday risks. Coupled with tight funds and fragile mentality, domestic steel prices will continue to find the bottom. It is a high probability event.

(