Tianjin Xinyue Industrial and Trade Co., Ltd.
Tianjin Xinyue Industrial and Trade Co., Ltd.
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Don't expect "new infrastructure" to bring high prices of building materials

Apr. 08, 2020

Under the impact of the epidemic, the environment facing the steel market has changed, and the number of variables affecting "steel demand" has increased. In this state, how should steel traders respond? In this regard, Ren Qingping gave his suggestions.


First of all, steel traders should make psychological preparations for long-term response. Judging from the current outbreak situation, the domestic epidemic is gradually being controlled, but the foreign epidemic is still raging. The impact and impact on the world economy will continue to increase. It will also affect the Chinese economy and will directly affect the "steel demand". Variety. Therefore, whether it is domestic or global this year, the "steel demand" intensity is limited, and steel traders must be fully psychologically prepared for this.


Secondly, in the business of steel traders, don't copy the stocks and stocks, just blindly quote. "This is because we never know where the" bottom "is." Ren Qingping said that steel traders still have to be stable and prudent, operate cautiously, adhere to the "less hoarding and fast shipping" business strategy and marketing model, and insist on winning the market with services. The more the steel market continues to be weak and the prices fluctuate sharply, the more service consciousness needs to be strengthened to establish a mutually beneficial community of destiny with downstream end users to jointly respond to the crisis and challenges brought about by the epidemic and enable steel traders to win in the service Customers, win the market.


Thirdly, steel traders should pay attention to the new demands and new characteristics of "new infrastructure". For steel traders, as the construction of "new infrastructure" increases, new "steel demand" and new customers will emerge. For example, according to the "New Energy Vehicle Industry Development Plan (2021 ~ 2035)", based on the 1: 1 car-to-pile ratio, it is estimated that there will be approximately 7 million charging piles in China by 2025. The charging pile mainly includes auxiliary materials such as the host of the equipment, cables, and columns, and the column involved is steel. Small charging piles use less steel, and large charging piles will involve some support steel. Roughly calculated at an average of 0.5 tons each, 7 million charging piles require about 3.5 million tons of steel, which will undoubtedly become the new "steel demand" The highlights are worthy of steel traders seeking new customers and opening up new markets.


But Ren Qingping emphasized that the "steel demand" of the "new infrastructure" is different from the "steel demand" of the traditional infrastructure. The investment density of "new infrastructure" is high, but the density of steel used is low. In addition to the large amount of steel used in UHV transmission, high-speed rail and rail transportation construction, 5G base stations, big data centers, industrial Internet and other construction steel are mostly excellent steel, special steel, etc., and demand is limited; due to the construction cycle of such infrastructure projects Generally longer, the demand for steel is also limited. Therefore, steel traders should not expect that the "new infrastructure" will bring the price of building materials up.


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