In June, the price adjustment of Baowu and Sadouns was reduced by basic products, and deep -processed products were mainly flat.
Among them, Baowu hot rolling, cold rolling, electroplating, and no silicon steel are reduced by 100 yuan/ton, and the remaining products are flat.
The price adjustment of Saderseye Steel has decreased greater. Basic products such as hot rolling, pickling, cold rolling, cold hardness have reached 200 yuan/ton, while galvanized and silicon steel products are mainly flat.
This is the first time this year’s price reduction, and the price reduction is relatively obvious, and some declines have not dropped. Is this reflecting the pressure of market flow?
1. The pricing mechanism leads to excessive price difference and cause price reduction to be close to the market
Because the pricing mechanism of ADBBIC is mainly based on the model of prepayment+settlement (Ansteel) at the end of the month (Ansteel) Cross -month settlement (Ben Steel).
Baosteel is based on the prepaid model and priced monthly. Because it is a prepaid form, its order price is generally 400-500 yuan/ton higher than the market price.
With the market price of April-May, the average market price of the entire market in May has reached a level of more than 200 yuan/ton in May. Therefore, in order to reduce the gap between its order price and the market, it presented the price reduction measures.
2. Logistics and consumption pressure caused by the epidemic
The epidemic in the Mainland mainly affects the Northeast and East China market, and Saders and Baowu have been affected by positive.
The epidemic has led to the poor logistics of its local and surrounding markets, leading to a problem with transmission between upstream and downstream. With the impact of the epidemic in April to May, a certain stagnation of downstream consumption has caused a monthly consumption in the middle.
Therefore, it caused a certain pressure on the order of steel mills in June. Although the overall order was not too pressured, the downstream manufacturing inventory was also at a low level, but it was reasonable to make good support for each other.
Third, reduce the pressure on the movement of the proxy in the hands of the agent’s hands
At present, the market inventory is large. The main sales resources of the market are mainly from the quantity of February to April. In the case of short-term markets that are difficult to measure and realize, the agent’s mobile funds have a greater pressure.
Reducing prepaid payment can effectively reduce the pressure on the flow of funds in the hands of merchants, and can better normal cooperation.
Fourth, the basic material reduction and deep processing materials are not reduced in price reduction
The order of Baowu and saddle in June can basically be completed, but the pressure still exists. The main gap is that the export orders in June declined, and after the decline of home appliances and car orders, the number of hot rolled commodity volume increased.
Therefore, this is the main reason for the decline in circulating resources, and the deep processing materials have not declined. Secondly, most of the deep -processing products are dominated by direct supply, which can be relatively small, so this is why there is no adjustment on the bright side.
Judging from the price adjustment of the steel mills in June, the price of Baowu steel mills has been reduced, which also expects that the market cost will decline, and liquidity expectations will rise in the market.
For the downstream end, it is conducive to controlling costs and profits. However, considering that there are pressure between upstream and downstream, the actual pressure caused by the market is not great. It is more of a mental impact, and the impact on market prices is slightly smaller.
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