Scrap steel recycling prices fell to the lowest in 10 years

67 cents a pound, we should not think that this is the price of cabbage in the market, but the recent recycling price of scrap steel. On October 28th, the reporter interviewed Rong Cheng's recycling market. It was learned that since the beginning of this year, the prices of scrap steel and finished steel products have fallen all the way to the lowest level in nearly 10 years. Such a low price has caused many buyers who have amassed scrap steel to be caught in a dilemma: If you do, you will lose money; if you do not, you will have to back up large sums of money.

Yesterday, workers at a recycling station in the urban area were using machines to cut waste iron pipes into small sections for easy loading.

67 cents a pound, we should not think that this is the price of cabbage in the market, but the recent recycling price of scrap steel. On October 28th, the reporter interviewed Rong Cheng's recycling market. It was learned that since the beginning of this year, the prices of scrap steel and finished steel products have fallen all the way to the lowest level in nearly 10 years. Such a low price has caused many buyers who have amassed scrap steel to be caught in a dilemma: If you do, you will lose money; if you do not, you will have to back up large sums of money.

In the past two months, the price of 300 yuan per ton fell. Zou Jianjun, president of the Rongcheng Renewable Resources Recycling Association, rang infrequently. Many owners of the recycling station consulted him about the market conditions of the recently scrap steel. "The price of scrap steel has fallen too sharply. The owner of the recycling station has no end in his heart," said Zou Jianjun.

What is the current recycling price for scrap steel? "6 hair 5 to 7 hair a catty, equivalent to 1,300 yuan a ton, and now such a market." Zou Jianjun said. The reporter learned from the vegetable market that the most expensive local Chinese cabbage can be sold for 8 cents a pound. This pound of waste steel is not as valuable as Chinese cabbage.

Zou Jianjun told reporters that before September, the purchase price of scrap steel was still more than 8 pounds, equivalent to a ton of 1,600 yuan. In less than two months, the purchase price of one ton of scrap steel fell by 300 yuan.

8 dimes into 8 cents to sell the purchase price all the way down, the profit space of the recycling station is greatly compressed. According to an interview with the reporters on the 28th, some purchasers purchased the scrap steel from the price of 8 cents a pound two or three months ago. At the moment, they sold only 8 cents to the iron and steel factory, and they were busy. "Selling can't sell it," said Mr. Long, who runs a recycling station in Xilongjia Village.

In the morning of the same day, the reporter went to Mr. Long's recycling station in the Xilongjia Village of the city. The courtyard was piled with a lot of scrap steel. "From the construction site and the enterprises received a lot of money, there are also some people who have collected in their hands." Mr. Long said. This pile of scrap steel is in front of us, and Mr. Long has made a mistake.

The purchasers, like Mr. Long, sold their scrap steel collected from Rongcheng to a foreign steel plant and earned a price difference. "Rongcheng does not have a steel production company. We are all selling to Yantai or Wendeng," Mr. Long said. However, starting from this month, the enthusiasm of a Wendeng iron and steel plant to purchase scrap steel has significantly weakened. “In the past, this steel plant would often send someone to Rongcang to supply goods. After finding the source of goods, it would also send a special car to pull the goods. We don’t have to worry about it.” Now, this steel mill has not sent anyone to receive goods for a long time. Fight less.

Two days ago, the staff of the steel plant called Mr. Long to say that they needed 40 tons of scrap steel, but Mr. Long had used the car to deliver it. Not only that, all used steel must be cut into lengths not exceeding 80 cm before loading. To this end, Mr. Long had to arrange for a worker to take up cutting steel. “In the past, it was loaded on a car and it was taken away regardless of length,” Mr. Long said. With such stringent requirements, when Mr. Long sells 40 tons of scrap steel, he must affix transportation and loading fees. Despite all the demand from buyers, Mr. Long was fortunate enough to sell this batch of goods.

Mr. Long Nan, a long-term buyer, said that the scrap steel he has left behind is not much left, and he will not purchase large quantities in the short term. However, there are many purchasers who have a backlog of waste steel at a rate of 670 tons or more, and more than 1,000 tons.

Mr. Chen, who runs a recycling station in the waterfront village of the city, is still missing a large amount of scrap steel purchased last year, which has more than 600 tons. In the second half of last year, Mr. Chen purchased scrap steel at a price of RMB 1.3 per catty, and now he can sell up to 8 cents per catty. As long as you shoot, you will lose money. Mr. Chen said that at this price, he will not take any action. Look no further. This reporter learned that the current finished steel can only sell 1.4 yuan a pound, which is not much higher than the price Mr. Chen acquired last year.

Mr. Wang from Shidao, who is even worse than Mr. Chen, now has more than 1,000 tons of scrap steel on hand. The original purchase price was nearly 2.6 million yuan. Watching this 2.6 million yuan worth of goods is now only worth more than 130 million, Wang's heart is not really good. "If I sell now, I have to lose half my money and I have to wait." Mr. Wang believes that such prices have bottomed out and will eventually rebound.

The oversupply is mainly due to interviews with reporters who interviewed several purchasers who purchased scrap steel for about 10 years. They all agreed that the acquisition of scrap steel in 2008 was the most profitable.

"From the second half of 2007 to the first half of 2008, the price of steel was very good. During that time, our colleagues earned money." According to Mr. Long, the purchase price of used steel was between RMB 3,600 and RMB 3,700 per ton during this period. Can be sold for 3900 yuan per ton to 4,000 yuan. This means that for every ton of scrap steel sold, you can earn three or four hundred yuan.

On the eve of the 2008 Olympic Games, the price of finished steel was as high as 7,500 yuan per ton. At the moment, finished steel can only be sold for 2,800 yuan per ton. Colleagues agreed that the oversupply and overcapacity are the main reasons for steel sales.