Behind the fall in steel prices: the pressure on manufacturing industries such as hardware has increased dramatically

The purchase volume index showed its first negative growth in the past five years, and the finished goods inventory index rose sharply to more than 50%. In Feng Tianxiang’s company yard, there was a neat row of steel in the open air; and on his desk, the customer just placed Three faxes were sent, and three customers clearly told Feng Tianxiang that they would no longer order plates in May. Feng Tianxiang is the general manager of a steel trading company in Hebei Province. He also represents the products of four steel companies. A while ago, steel prices continued to rise, market demand has been sluggish, and Feng Tianxiang frowned. “Day shipments have decreased by 60%.” Feng Tianxiang said in an interview with the author on April 14. According to Feng Tianxiang, now the hot plate products sell 1 ton to lose 200 yuan to 300 yuan, the more you sell, the more you lose. However, the amount of inventory in the early period is too large. In order to reduce the inventory pressure and withdraw funds, even if it is lost, it must be sold. In addition, in order to maintain the relationship of some old customers, they have to sell them some steel at a low price. Pressure continued to accumulate, Baosteel took the lead in price cuts, and the price of cold rolled products in May was lowered by 300 yuan per ton, and the price of hot rolled products was lowered by 200 yuan per ton. Behind the price cut by steel companies, there is a change in the purchasing managers' index. From the 11 sub-indices of the Purchasing Managers Index in March, compared with the previous month, the purchasing volume index, import index, and purchase price index fell, the purchasing volume index showed the first negative growth in the past five years, while the latter two indexes fell. Nearly 2 percentage points; the remaining indexes have risen, and the finished goods inventory index has increased by a large margin, exceeding 4 percentage points, reaching more than 50%. Some experts believe that the change in the purchasing managers' index reflects the difficulties faced by the manufacturing industry this year in the face of rising raw material prices and increased inventory pressure on finished products. Steel companies compete to cut prices, but still can't sell. After Baosteel lowered its steel ex-factory price for the first time in nine months, other steel mills will follow up immediately. On April 15, Angang issued a comprehensive reduction in the ex-factory price of steel in May. Among them, the reduction of thin-rolled products such as cold-rolled, galvanized and color-coated products caused the market to “fall below the glasses”, and the ex-factory price of cold-rolled products was lowered by 480 yuan per ton. The galvanized products are lowered by 350 yuan per ton, and the color coated products are lowered by 300 yuan per ton. From the order point of view, the orders of steel mills in April were generally good, but orders from some manufacturers have begun to decline. According to public reports, Baotou Steel's orders in April fell to 90%, and orders for the first three months of this year reached 100%. An insider of a steel enterprise in Shandong told the author that the company's order situation is slightly better than Baotou Steel, but it has also fallen sharply. Ma Tengfei, a steel trader in Beijing, told the author that the price cuts by steel companies are not enough to stimulate the market, because the downstream manufacturing demand has not come up and the purchase volume is difficult to increase. If the manufacturing situation is good, even if steel companies do not cut prices, the purchase volume will be good. Ma Tengfei said that the current steel stocks on the market are roughly 10% higher than the same period last year, which will offset the positive impact of steel price cuts. Some analysts believe that the steel mills that produce thin plates take price cuts mainly because the orders of traders and downstream industries have shrunk dramatically. At present, the pressure on steel mills is much higher than last year. Therefore, “this time the steel mills fell sharply in price, in order to reduce the degree of 'upside down', stimulate the traders' order enthusiasm and guarantee the order quantity.” But the traders “do not appreciate”. Feng Tianxiang clearly told the author that the company has submitted a request to the four steel companies that they are not accepting, because the company's inventory has exceeded 10,000 tons, and the inventory is incomplete and cannot be sold. Feng Tianxiang said that the traders who are mainly engaged in thin sheets have previously reduced the order quantity in March and April, and many traders are close to the "zero operation" status. In addition, customs data shows that China's exports of thin-plate products also declined sharply in February: China's exports of cold-rolled products in February were 109,000 tons, a decrease of 27% from the previous month; in February, the export volume of galvanized products was 263,000 tons. Among them, the export of hot-dip galvanized products was 255,000 tons, a decrease of 11% from the previous month. In February, the export volume of color-coated products was 216,000 tons, a decrease of 34% from the previous month. Is the manufacturing industry entering a downturn? Before this round of price cuts, steel prices have been rising for nearly a year, and prices have risen from the lowest of 3,000 yuan during the international financial crisis to more than 4,500 yuan. An insider of a car company told the author that in the production process of automobiles, steel accounts for 60% to 70% of the total consumables of automobiles, and the price of steel largely affects the profits of car companies. The insiders of the above-mentioned car companies said that the company is very sensitive to the rise in steel prices. At the end of last year, the cost per car of the company increased by several thousand yuan. The person in charge of the publicity department of Yutong Bus also told the author: "The rise in steel prices will definitely affect the cost and squeeze the profit margin of the car companies." "For car companies, this steel price reduction does not have much practical significance because of the car sales. A lot of declines, steel purchases have also declined. The price of raw materials can only be borne by the car companies, it is impossible to pass on to consumers, and now the price reduction of cars is not good enough to sell." The insiders of the above-mentioned car companies told the author. At present, BYD announced that it sold 40,027 vehicles in March, although it increased by 51% from the previous month, but it fell by 41% year-on-year. In the first quarter, BYD sold nearly 120,000 vehicles, down about 25% year-on-year. According to the latest statistics released by the China Association of Automobile Manufacturers on April 10, in the first quarter of this year, the cumulative production and sales of domestically produced vehicles reached 4,875,700 and 4,983,700, an increase of 7.48% and 8.08% year-on-year, a decrease of 69.51% over the same period of the previous year. 63.7%. The home appliance industry is also deeply troubled. According to statistics, in the first two months of this year, the production volume of refrigerators, air conditioners and washing machines in China's household appliances market has fallen sharply. In the first two months, China produced a total of 10.526 million household refrigerators, 9.721 million washing machines, and 20.731 million air conditioners. The production of household refrigerators in February fell by 1,209,900 units from January, compared with the same period last year, the growth rate dropped rapidly from 25.33% to 4.2%. The washing machine production is also facing the same situation. The entire production in February was just over 4 million units, which was 25.95% lower than that in January, and only 3.3% compared with the same period last year. According to the latest data released by CIC, from January to February, the total sales volume of the company's total industry decreased by 1.5% year-on-year, mainly due to the sharp decrease in domestic sales demand. The sales growth of domestic brands continued to be sluggish. Some analysts believe that "the state's suppression policy on the real estate industry will also be transmitted to the home appliance and automobile industries, and ultimately affect the demand for thin-board products." An expert who did not want to be named by the Development Research Center of the State Council told the author that since the 12th Five-Year Plan Since the introduction of the plan, the state's macroeconomic regulation and control has frequently been launched, mainly to adjust the structure. Some of the steel industry's production growth rate has slowed down, product demand has weakened, and demand for raw materials such as steel has weakened. "In addition, the central bank has raised reserves and interest rates several times since the fourth quarter of last year. It is difficult for terminal steel companies to raise financing and increase costs, which directly affects their purchase of raw materials such as steel," the expert said. Experts: getting rid of policy dependence The head of the China Automobile Association said in an interview with the author that the decline in car sales was mainly due to the exit of the three major support policies of purchase tax concessions, car going to the countryside and auto replacement. The person in charge believes that this year's auto market faces many uncertainties. Last year, the auto market went to the middle of the market and there were still policies such as subsidies for energy-saving and welfare subsidies. Many favorable policies this year were basically cancelled. This will directly affect the profit of this year's car companies. In addition, due to the state's regulation of real estate, home appliance companies are chilling. Sun Liang, an internal researcher at a home appliance company, said: "The pressure on the company this year is very large. The country's regulation of the real estate industry and the downturn in the property market will definitely affect the sales of kitchen and bathroom appliances." Yang Dongwen, vice president of Skyworth Group and president of the color TV business unit Publicly stated that the real estate situation is not good, and the sales of color TVs have been affected. Experts from the Development Research Center of the State Council mentioned that these industries are too dependent on this temporary “subsidy-based” policy, and once the policy changes, it will be “unprepared”. Feng Tianxiang said: "The downstream manufacturing enterprises used a very large amount of steel last year, mainly because of the influence of policies, which stimulated the consumer market. It is equivalent to pre-empting the market demand. Now the policy has been abolished and the market demand is not so big. The "Twelfth Five-Year Plan" proposes: "Optimizing the structure, improving the quality of the varieties, enhancing the supporting capacity of the industry, eliminating backward production capacity, developing advanced equipment manufacturing, adjusting and optimizing the raw material industry, transforming and upgrading the consumer goods industry, and promoting the manufacturing industry. The above-mentioned experts from the Development Research Center of the State Council believe that the temporary policy of “severe drug” alone cannot help the manufacturing industry become bigger and stronger. Now the market demand for manufacturing is not strong, and it is not possible to adjust the structure. Avoid, companies can't always think about "requiring policies" to solve temporary problems.
 

Mini Steel Tape Measure

1. Features of tape measure

Gift rulers are used for advertising and promotion. They are divided into Steel tape (steel tape) and leather tape (PVC plastic fiber tape). They are usually cute and compact. Tape measures are also called measuring tools. Eighty-five percent of the world's tape measures are exported from China.

2, the characteristics of the tape measure

(1) The tape measure is too deformed and will not fail

Why didn't it fail? The spring in the tape measure is very long, and its range from completely relaxed to fully tightened is very large. The entire stroke of the tape measure includes it, and there is a margin at both ends, so the tape measure will not fail.

(2) Pull one meter long and pull two meters long, there is no difference in tension

The spring of the tape measure is very thin, and the amount of deformation when it is tightened is also small, so the reaction force is very small, and the force change is not felt when the rule is pulled.

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