What Price of Construction Steel for Winter Storage?
--construction steel storage for winter will start
The 2019 is gradually coming to an end. The winter storage of construction steel is about to start. Steel mills in China have introduced winter storage policies. According to incomplete statistics, about 20 steel mills in various regions in the north have already introduced winter storage policies. The winter storage policies of mills such as Meijing, Lanxin, Shenyin and Changping are mainly based on locked prices. The locked price, locked quantity and locked types of steels are based on a single negotiation. In terms of delivery time, most steel mills remain near March 31, 2020, and a few steel mills maintain their value until the end of April, which is not much different from 2019 in terms of time.
In addition, in order to attract market attention, most steel mills usually use the settlement method of keeping without rise when market rises or falling when market falls. At present, there are fewer steel factories that specify the price at winter storage period. Most of them use post-settlement methods. Some steel plants have continuing the settlement of net prices and other methods, the overall confidence of steel mills is insufficient.
From the perspective of locked prices, the market steel price is 3600-3800 yuan / ton in the Northeast, 3370-3560 yuan / ton in the northwest region, is , and mostly 3400-3660 yuan / ton in North China. From the perspective of market understanding, it is more attractive compared to the value-locked preservation. But most steel mills still receive less winter storage. At present, the market price for winter storage is around 3450-3,500 yuan / ton in North China, 3500-3600 yuan / ton in East China and around 3600-3700 yuan / ton in Middle south west area.
The analysis believes that the current construction steel market may continue to oscillate downwards. It is expected that the market price of large-scale winter storage will start from around the end of December. Due to the current market's greater efforts to improve transportation, considering the arrival time and other issues, winter storage may finish near the end of January 15,2020.