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On April 28, Premier Wen Jiabao of the State Council presided over a State Council executive meeting and heard reports from the Ministry of Supervision, the Development and Reform Commission and other departments on the illegal construction of steel projects by Jiangsu Tieben Iron and Steel Co., Ltd., and instructed Jiangsu Province and related departments to deal with relevant persons responsible. Seriously dealt with. A special inspection team of the State Council, led by the National Development and Reform Commission and the Ministry of Supervision, including the Ministry of Land and Resources, the People's Bank of China, the State Environmental Protection Administration, the General Administration of Industry and Commerce, the State Administration of Taxation, the Auditing Department, and the China Banking Regulatory Commission, conducted inspections on this project.
The excitement of the steel market has finally cooled down. But until now, the price of steel is still rising.
Since March, the market price of steel sheet has soared from 2,200 yuan/ton before the Spring Festival to 5,000 yuan/ton, and the steel price has risen sharply, causing the cost pressure for automobile manufacturers to surge. Due to the rise in steel prices, many companies have stopped production and the rise in steel prices continues.
Rising steel prices have had a violent impact on auto parts
In Zichuan District, Zibo City, Shandong Province, there are more than 30 large and small automobile spring plants. The main raw material of the automobile spring plant is steel plates. The owner of the automobile spring factory jokingly called themselves "steel resellers." The plate-type automobile springs produced by these small plants have very low technological content and very limited profits. After the Spring Festival, due to the sharp rise in the price of steel, some factories have closed their doors due to the inability to buy steel. However, some plants purchased large quantities of steel products before the Spring Festival. Now they do not need to produce springs, and they can earn 150% of profits by selling steel products directly.
This is a strange phenomenon.
On the one hand, the price of steel has risen, and the production cost of enterprises has risen. On the one hand, companies are constantly reducing prices in order to compete for the market. In order to maintain profitability and digest raw material price increase factors, OEMs have been overwhelmed by the pressure of raw materials prices and market price reductions for parts and components companies and product prices. In particular, parts and components companies that use steel as the main raw material are even worse.
Modified car companies face a crisis of survival
The impact of the increase in steel prices on the automotive industry, the modified car bears the brunt. Take Shandong Province as an example, Shandong Province is a large province of modified cars. Due to the recent price increase of steel, many companies have no rice cookers, and some large-scale enterprises still barely maintain production. Small-scale conversion enterprises are in a half. Discontinued state. Purchasing steel products all over the place becomes the main task of the person in charge of the company.
One director had calculated such an account, the steel price per ton of 3,000 yuan, the company needs more than 1,000 tons of steel per month, only a steel price increase, the company increased the monthly cost of more than 300 million. The price of steel has risen, but the price of cars has not basically risen. At present, the price of cars has dropped further. Whoever increases the price of cars will face the danger of losing the market. Steel prices have reached the limit that the car modification industry can afford. The higher the price of steel products, the more manufacturers must purchase steel, because no one will determine when the price of steel will fall back. No matter how the steel rises, the factory can't leave the steel as long as it produces. One veteran introduced that the increase in steel prices has caused some regular manufacturers to suffer heavy losses. Some underground small plants that have not entered the announcement have enjoyed a prosperous business because the steel they import is produced by small steel mills in Hebei, Shanxi, and other places. Material quality Poor, the price is extremely low. Many CEOs of modified car companies frankly stated that they have already reached the peak season of selling cars. Enterprises are not worried about market demand. They are worried that the price of steel products will be out of control, otherwise many companies will face losses and stop production.
Steel Supply and Demand Imbalance Test the Automotive Industry
According to analysis by industry insiders, the rise in the price of steel products has caused the pressure on the downstream industries with steel as the main raw material to increase rapidly. The automobile industry is used as a large steel product and the harm is unavoidable.
The person in charge of Shandong Laiwu Iron and Steel said: Excessive steel prices not only endanger the auto industry, but also extremely harmful to the steel industry itself. Once the downstream companies are unbearable, they will restrain the consumption demand of steel products and cause the market to shrink, causing the contradiction of supply exceeding demand. The falling prices of steel products ultimately threatened the steel industry itself.
When it comes to the reasons for the rise in steel prices, industry insiders are mainly concerned with the impact of rising international steel prices and domestic demand for steel. They are also related to upstream prices (such as coal) and other factors in the steel industry. There is also a direct relationship between raising prices.