APEC Impacts on Shandong Steel Market

World-beating 11th APEC meeting ended in Beijing and fine count the meeting for the influence of hong kong-listed, not is small, the first is the hebei tangshan area so the steel plant shut down maintenance, and neighboring provinces and the area of steel mills and the downstream site production shutdown in succession, can say in this short period of time a week the whole hong kong-listed experienced since this year the biggest turning point, originally glut on the market of steel, due to the steel plant shut down during the meeting, cause period market out of stock, out of stock, this has paved the way for the merchant early inventory digestion as well as the price, but good time is always short, after the meeting of hong kong-listed exactly what kind of, below the author will through the brief analysis of two aspects of building materials and the plate after the APEC meeting in shandong hong kong-listed changes.

Firstly, construction steel

According to the survey, the shandong area because of the APEC meeting production capacity of manufacturing enterprises (zhang gang, fujian source, west king, etc.) start oven, blast furnace production line normal production in succession, affect the output of timber for the APEC meeting of about 250000 tons; Shandong area because of the APEC meeting to suspend all big project is expected to 13 to return to work. The meeting influence to shandong iron and steel production enterprises production accounts for 3.86% of the sample steel mills in normal production, accounting for 12.13% of the distributed steel mills in normal production.

Meeting after the security, steel inventories in the province is still in a slight decline, this is because the steel mills and production need a cycle, the cycle is about 5-10 days or so, so this period of time in the province of steel will continue to maintain low inventory, and with the steel mills in normal production, delivery are normal, as steel mills shipments will be improved, generally after the APEC meeting, steel inventory pressure drop in shandong province, and now manufacturers need to consider is how to keep the good situation to continue. Shipment and circulation, while meeting the businessman has turned for the better, but restricted by less resources, specification of shipments in meeting is not ideal, so after the meeting, the price is relatively high, businesses take delivery enthusiasm is not high. Downstream terminal, due to the six cities in the province of the construction site is more or less have to shut down the phenomenon during the meeting, but most of the shutdown of the site belongs to the city center project, and most suburban building site is still normal work, so after the meeting the downstream procurement and no obvious increase.

Secondly, the medium plate

To say the APEC meeting for medium plate influence is bigger, the APEC meeting course steel mills have their strength increase, the price of steel lock conveniently pull up, during the APEC meeting, hebei handan, tangshan region steel plate production enterprise basic at all, in shandong region influential steel Wen Fengpu Yang steel blast furnace is virtually all boring, only rolled products has a 4000-5000 tons of production every day, compared with before the meeting of this high yield is almost negligible. Under the influence in the province of taian, weifang, Qingdao, yantai, jinan and other regions Wen Feng, PuYang medium plate prices.

During the APEC meeting, taian market has obvious medium plate prices, the author through the investigation understands, at present there are 20 or so do taian market merchants of medium plate, of which more than 90% of the businesses do hebei Wen Feng, PuYang medium plate, month normal inventory has 100000 tons, but during the meeting to ensure market inventory level is less than 20000 tons. Due to steel mills don’t shipment, extreme shortage of market resources, even if the businessman quoted price rise, the terminal customer withdrawals increased, but because of shortage of clinch a deal is still light. After the APEC meeting, the author by telephone survey, the current market Wen Feng, PuYang medium plate has been the arrival of the goods, many businesses in order to deal with inventories have also cut down the price for shipment.

Conclusion

As the end of the meeting to ensure, in the province of steel mills to resume production in succession, against the effects of the weakened gradually, this can be can be seen from the recent steel price disadvantaged consolidation, construction steel prices recently and medium plate prices weak consolidation, as steel mills delivery is normal, but near the end of the year, comes at a time when the steel should be falling stage, most of the merchants hold negative attitude to afternoon, under the influence of these factors, steel prices down is a inevitable trend, so the author predicts that as the end of the meeting to ensure, mid to late November until the end of the year, steel prices or weak downward.