Steel Plate Hoarder: Explain This Year's-Winter Storage

- Jan 04, 2019-

For steel traders, November is the annual "Winter storage" time, but injured steel traders are less willing to hoard this year. Yesterday, a East China steel traders told the "Gold Securities" Reporter: "Steel price trend is really not clear, last year's hand hoarding goods cover half a year before the shot, the bitter lesson let us how many years to form the winter storage habit said no."

A steel listed company Securities department yesterday also to the "Gold securities" reporter revealed, "Generally winter storage season, many traders will come to talk about the price of goods, this year has not come to talk about this matter."

Hoarding costs rise

"Every winter, our steel traders concentrate on stocking the rebar. "The above steel traders revealed.

"Gold securities" reporter learned that the trader has been involved in the "Winter storage" 5 years, for him, this year is the most dismal year. The above-mentioned spring plate traders explained to the "Golden Securities", "Why is there a popular ' winter storage ' in the industry?" Mainly due to low prices.

It turns out that the annual winter construction area in the northern region is greatly reduced, resulting in reduced sales of steel plates, steel mills in the region and long-term contact with traders reached an agreement, by traders to bear a portion of the rebar inventory.

Steel traders are generally happy to help steel mills complete "Winter storage" due to lower shipping prices during the "Winter storage" period and taking into account the needs of spring. There is the difference to make the best, however, this year, the market demand is weak, no one is optimistic about the future trend of steel prices, the trader bluntly said: "Hoarding costs are too high."

Yesterday, industry analysts to provide reporters with a new market demand shows that the current mentality of steel traders is: the normal amount of sales agents, no intention of additional winter storage. Another part of the steel traders choose to wait and see, will be low and moderate to fill the position, but if the steel price in more than 3700 yuan/ton is not "winter storage."

Traditional laws are difficult to extend

"In fact, the weakening of winter storage began 2009 years later," he told. "The above steel traders told the Gold Securities reporter. "According to the previous situation, the steel industry operates in a strong law, at least two waves a year more large market, but now the price is more and more difficult to grasp."

The steel trader pointed out, for example, the latest news is that Hangzhou, Wuxi, Ningbo and other markets of sand steel resources in October has been in an unsaturated state, traders barely able to get the order volume, this month the price relative fluctuation is smaller, the willingness to increase. "Many people think that this is because winter storage makes the current price look strong, in fact, we have doubts about whether the price of the Spring Festival will soar next year."

"The reduction in hoarding actually started in 2009," the steel trader told Golden Securities.

According to the data he provided, the hoarding volume in 2010 was 50% per cent lower than in 2009. Analysts told reporters yesterday: "2011 years, to the winter storage season, but the delay has not started, the main reason is that we do not believe in the traditional steel price of the operation of the law."

"Gold securities" reporter learned that August 2011 late June steel prices rose to the year high, steel prices plummeted, out of a wave of plummeting market, after the steel mill forced to reduce production price, there is a period of stabilization, but 2012 steel prices continued to weaken, August steel prices plummeted. Data show that August key large and medium-sized steel enterprises sales revenue of 279.45 billion yuan, profit income of minus 4.196 billion yuan. "The profit situation has slipped and the steel price movement is really not good to say. "There are very few traders who do come to us and are ready to do winter storage," a steel-listed company Securities department told Kim securities yesterday.

High stock volume, tight money.

"Traders are reluctant to do winter storage, and in addition to poor prices, the shortage of funds in the hands is also a major problem. "A steel market staff in Jiangsu told the" Gold Securities "Reporter:" Steel trade enterprises credit crisis hit traders, the hands of too much inventory, capital turnover is difficult, indeed a belly bitter water. "

"Traders are profit-seeking, there is money will naturally not let go of low-buy high-selling opportunities, indeed this year the tension on hand, limiting the willingness of many large households to hoard goods."

"Southern Region, east China Merchants said winter storage has little impact on the local market, only a small amount of hoarding before the Spring Festival, the current local business is more concerned about the problem of resources southward." "More than tons of inventory of emergency traders, is currently running around for steel to find a way out, winter storage traders hurt."