The domestic steel prices have fallen for March hit a two-year low in July, the decline has not only stopped, but more pronounced decline. The steel price decline is difficult to climb because the industry can be described as divergent views, for example, supply a high degree of excess demand can not afford, but I believe that these are only the superficial reason, the deeper reason is the capital chain of the steel trading business near the end of the traditional business model and the steel industry.
 
Deep down in progress
 
China steel net statistics, July 16 -20, 2007, the domestic steel market panic mood worse, steel spot and futures prices are a week-long accelerated down market. Brush out of the main 1301 contract, rebar futures in the week for five consecutive trading days, the 20th year low, as of July 20, the major 1301 contract falling as low as 3747 yuan / ton, the highest the lowest since December 2009.
 
Since the first half of 2012, the decline of the domestic steel varieties generally more than 500 yuan / ton, steel production, steel mills operating rate is still maintained high. In addition, under the influence of the demand for off-season, it is expected that one or two months of the downstream demand are difficult to see a lot of release, the Steel City, the contradiction of supply exceeding demand will be difficult to alleviate.
 
Zhengzhou, a steel trading business, said: "In addition to the contradiction between supply and demand is difficult to alleviate the space In addition, iron ore and other raw material prices fell not, post, steel furnace charge must there fell sharply, some say, imported iron ore prices to return to 120 USD / t is entirely possible, in this case, already below the 3700 steel prices is likely to usher in cost-driven fell sharply. "
 
Deep down the reasons behind
 
One reason: the steel trading business from the bank's "attendance" to "a thorn in the side
 
As we all know, the domestic steel trade and the financial sector symbiotic development of the steel trade and industry, lack of funds, lack of water, and soon as the fish died from choking.
 
China steel net reporter learned that, at present, a lot of steel trading business are facing financial pressure. Zhengzhou, a steel trade distributors, admits: "capital is forage troops and horses, forage before moving to the truth, surely we all know, however, the present situation is a lot of steel trading business, get loans, even if could get to, but also through many procedures. Moreover, the industry downturn, steel prices kept falling, profit pitiful this case, the credit demand of the steel trade and industry is declining. "
 
The reason why the steel trade very difficult to get models, which dates back to April and May of this year, in some areas a number of banks to stop lending to steel trade, directly fuse the steel trade and industry continues to burst the steel trading business run Road, suicides, especially in late April Nanjing steel trade and the female boss suicides is staggering.
 
Hebei Handan, a business strip business, Mr. Chang big complained to the author the water: "A few years ago, our loans fairly easy to mutual security, several companies, you can easily credit to tens of millions of money, some bosses are simple sign up for a handbag company, also from the bank to get loans. "Mr. Zhang sermon:" is even more ridiculous to performance, some local governments in the investment of time, the deliberately audit lax, so we drill a lot of loopholes, typically, a few years ago, the bank staff in order to complete the performance, specifically home for our 'service'. In short, a few years ago, we do not want to loan, has been hard to and handed. "
 
"But now the situation is different, the good old days gone, now, trying to loans not necessarily be able to get models." Mr. Zhang looked very helpless.



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