The steel trade business capital chain problem

From the center daily news this year, the performance of the steel industry continued downturn seems to be improving. Of disclosure in earnings during the first half of the iron and steel enterprise net profit has increased.

LingGang shares, according to data from the first half of this year the company profit attributable to shareholders of listed companies net profit of 36.9273 million yuan, increased 115.92% 114mm carbon seamless steel pipe china suppliers year-on-year. Long litas material in the first half net profit year-on-year growth of 37.95%; The big special steel net profit up 29.42% from a year earlier.
But it is worth noting that some time ago "money shortage", for the whole steel circulation industry is worse. It is understood that the general scale of steel trade enterprises, the need to rely on bank loans, when at least ten thousand yuan, it is not surprising that hundreds of millions of yuan. Domestic was nearly ten branches in jiangsu province governor for steel trade financing black hole "fall", also reflects the steel trade, the fragile capital chain.

Famous Ma Zhongpu market experts pointed long radius butt weld pipe elbow out: "the early stage of the steel market prices fell sharply in a row, the steel trade business losses and capital chain tension, and some of the steel trade business repeat mortgage to futures speculation, loss serious. These Banks still no sequelae moderately relaxed lending restrictions on steel trade industry."

Recently, the domestic spot steel prices rise in two months in a row, some leading steel mills in the new monthly 90 degree pipe fitting long radius elbow ex-factory price increases. Steel information agencies "my steel" provide the latest market, according to a report in the latest week, domestic steel prices rose about 1.35%.

Cic advisory metallurgical industry researcher YuanZhiBin said, it shows that the steel prices rising channel has been basically stable, or will start, "the gold nine" market is expected to increase the profit margins of steel mills. But on the other hand, steel prices is behind a bigger rise in the prices of raw materials, or to corrode steel mills profit; Early mills stock fell sharply on the other hand, are likely to exist in steel enterprise in advance to fill inventory, subsequent sales or blocked. Therefore, in general, this round of adjustment of steel mills will eventually form a good remains to be seen.