Faucet prices callback for the first time this year

“In the past few days, the prices of the faucets on the market have all been lowered.” Yesterday, Mr. Wang, a veteran of a valve factory in Yuhuan, said that the average price of stainless steel faucets is between RMB 1 and RMB 2. The single handles for kitchens and toilets are used. Faucet, the decline is generally between 3-5 yuan.

Not only taps, hardware markets in Wenzhou, Taizhou and other places, including hardware products such as locks, showers, hinges and other home improvement hardware, have seen a slight drop in prices in the last two weeks.

The “Yiwu Index” released last week also showed that the price index on hardware and electric materials and lock products in Yiwu market regressed and declined by 2.46 points.

For hardware products, this round of price correction has not appeared for a long time.

“Since the second half of 2009, the prices of raw materials such as steel, copper, and zinc have been rising, especially since March of this year and early April,” said Liu Liu, head of a hardware company in Wenzhou, saying that raw material prices have skyrocketed. The original meager profit of the enterprise is almost zero, and companies can only rely on the slow price increase to ease the pressure. “No one thought that the metal price will fall so much in the past month, and we are relieved.”

The price of faucets has been recalled for the first time this year. The price of steel products has been falling steadily. "At present, the decline in hardware products is not yet very large." Mr. Wang said that many companies currently use raw materials for high prices in March and April, with new raw material prices. Decline, after an estimated month, the price of hardware products will continue to decrease.

The panic selling price of metal raw materials in Hangzhou's steel market has fallen, which has greatly eased the cost pressures previously faced by hardware companies. However, it is a fatal blow for the traders in several major steel markets in north Hangzhou.

Since mid-April, domestic steel, copper, aluminum, zinc and other metal raw materials prices have plummeted. In particular, some steel products have fallen sharply. In several major steel markets in the north of Hangzhou, many traders who have been hoarding steel products a lot in the previous month have recently been rushing to throw cargoes, leading to a panic decline in prices. In just one month, some traders spewed. Less than half of the profits.

According to statistics from the “My Steel” website in Hangzhou, as of yesterday afternoon, the price of rebar produced by Shagang has dropped from 4,600 yuan/ton in mid-April to 3,850 yuan/ton in the mid-April, with a drop of up to 16%.

"A lot of people have never thought of such a large decline in a short period of time." Xu Saizhu, manager of the "My Steel" Network Hangzhou Office, said that from March to mid-April, steel prices have been rising rapidly, and many traders are very optimistic about the market outlook. , Have chosen a large number of goods. However, no one expected that steel prices would start to fall rapidly after mid-April. Since May, transactions have been sluggish. Together with the ** market, the market has also suffered the same plunge, forcing some traders to start panic selling.

Real estate regulation affects the global resource market Although steel traders are selling at a loss, the downstream demand has not been improved.

“A lot of construction companies have chosen to wait and see, even if it is getting goods, but also use a little, get a little, will no longer like a month ago as large quantities of goods.” Chengbei steel market, a trader said.

Although in March and April, both steel mills and traders were full of confidence in the continuous rise of steel prices, but one month ago, the government suddenly increased the intensity of real estate regulation and became the last straw to suppress the expected price of steel.

The real estate industry is the largest exporter of steel in China. According to data from the China Iron and Steel Association, China produced 560 million tons of steel last year, of which 36.1% was used for housing projects.

On April 17, the State Council promulgated the “Circular of the State Council on Resolutely Curbing the Rapid Increase in Housing Prices in Some Cities,” and launched a heavy blow to control house prices. Once this policy was issued, the domestic steel market price quickly ended its rise for two consecutive months. Recently, there is news that the National Development and Reform Commission is currently leading the drafting of a "tougher" new document on the property market regulation and control policy.

Many steel company executives such as Baosteel and Shagang have stated that the cooling of the property market triggered a general weakness in upstream and downstream industries such as steel and home appliances. The market will be significantly inferior to the first half of this year. If similar policies continue, the steel industry will not be seen in the next years. It will get better.

Not only is the steel in a panicky decline, in the recent month, in the global market, the price of non-ferrous metals including copper, aluminum, zinc, etc., have experienced a similar rapid decline.

On May 17, the copper on the New York Mercantile Exchange fell sharply by 6%, becoming the largest one-day drop since the 2008 economic crisis. Analysts said that China's metal demand outlook is worrying, and is a key factor in the continuous decline of the international metal market.

Financial commentator Ye Tan said that after steel, cement, furniture, household appliances and other industries will also appear to be expected to decline in the process, which further extends, the upstream non-ferrous metals such as domestic and foreign iron ore, copper, aluminum and other associated with the downlink effect In the commodity market, non-ferrous metals turned around and fell for nearly a month. It can be seen that squeezing the Chinese real estate bubble not only affects the domestic market, but also affects the global resource market.