Lijiang Settlement Observation Point - Settlement Observation Standard Distributor L-shaped Stainless Steel Observation Standard Quotation

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　　Lijiang Settlement Observation Point - Settlement Observation Standard Distributor L-shaped Stainless Steel Observation Standard Quotation

　　At this time in previous years, it was the busiest day for member units of the Xi'an Iron and Steel Industry Chamber of Commerce. However, this year is different from previous years. Not only are there repeated impacts, but there are also a series of factors such as downstream "power cuts and restrictions", reduction in crude steel production, and further tightening of the real estate market. With the successive release of many central policies to stabilize the economy and prices, downward pressure on prices continues to increase.

　　Recently, Chen Xiaodong, the president of the Xi'an Iron and Steel Industry Chamber of Commerce, analyzed in an interview with China Metallurgical News that as we enter 2022, the policy focus will begin to shift towards stable growth. From the statements made at the previous Central Economic Work Conference, the economy is facing a "triple pressure" of "gradually shrinking demand, increasing supply shocks, and significantly weakening expectations" throughout the year. Therefore, at the macro policy level, it is highly likely that there will be a "broad credit+stable currency" situation, with some fiscal expenditures being prioritized, and the monetary side increasing support for structural industries such as small and micro enterprises, technological innovation, and green development.

Xi'an Steel City is currently closed

　　Considering that there is still a certain lag between the marginal improvement in credit and the return of demand, it is expected that commodity prices, including steel, will stabilize in the second quarter of this year, "Chen Xiaodong analyzed." Based on the current situation of Shaanxi steel market, at the end of 2021, due to the significant impact, Xi'an and surrounding steel markets are basically closed at this stage

　　Subsequently, he conducted a brief analysis from the aspects of supply, demand, inventory, and price.

On the supply side, production has significantly decreased year-on-year.According to statistical data, in the first 11 months of 2021, Shaanxi Province's crude steel production reached 13.5976 million tons, pig iron production reached 10.3885 million tons, and steel production reached 19.2245 million tons, all of which were significantly lower than last year. Among them, due to the dual control of energy consumption and the policy of reducing crude steel production, Shaanxi Iron and Steel Longgang still has one blast furnace in a shutdown state. In addition, due to the recent rebound, a furnace steel production enterprise in Shaanxi is currently in a state of shutdown due to insufficient supply of scrap steel.

In terms of demand, Shaanxi's demand has basically stagnated.Affected, downstream construction sites in Shaanxi Province are basically suspended, procurement is basically stopped, most steel traders are working from home, and demand in the province is basically stagnant.

In terms of inventory, there has been a significant increase in steel inventory.Recently, there has been a significant increase in steel inventory in the Xi'an area. As of mid January, the inventory of construction steel in Xi'an has increased to 303600 tons, the inventory of medium and thick plates has increased to 52400 tons, and the inventory of hot-rolled coils has increased to 82200 tons, all of which have significant growth compared to last year. Chen Xiaodong explained that on the one hand, due to the impact, downstream demand has stagnated, steel transportation has been hindered, and there is basically no actual shipment volume; On the other hand, steel companies have seen an increase in railway arrivals, with an average daily volume of around 10000 tons.

In terms of price, the characteristic of "having price but no market" is obvious.Currently, Xi'an Steel City is basically in a situation of "having value but no market". Demand has given way to winter storage, but from the perspective of market sentiment and winter storage resources, there is a significant difference compared to previous years, indicating that steel traders are still relatively cautious about the new year market. Chen Xiaodong explained that firstly, the current prevention and control situation is still severe, and secondly, the current winter storage prices far exceed the expectations of merchants. Considering the market after the Spring Festival, merchants will buy some goods to some extent, but in terms of the amount of goods purchased, this year's average has decreased by 30% to 50% compared to previous years, "said Chen Xiaodong.

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