Steel prices today December 21: Ending the uptrend, falling to 4,475 yuan/ton

China's real estate market is expected to remain volatile in 2022 and this may continue to affect steel prices.

Steel prices today fell again

Steel prices today May 2022 delivery on the Shanghai Exchange fell 62 yuan to 4,475 yuan/ton at the time of the survey at 8:15 am (Vietnam time).

Futures trading price list of some metals on the Shanghai Exchange (Unit: yuan/ton). Summary: Thao Vy

Debt problems at a major Chinese property developer have now affected a key industry artery, the steel sector, and are beginning to spread to other sectors of the industry. this country.

The widespread balance sheet crisis at real estate companies is a warning to Chinese policymakers, as the steel industry will have a significant impact on the economy.

Steel prices have fallen from record highs earlier this year as demand cools from construction activity, which accounts for more than half of metal consumption, while steelmakers' share prices have also been hit. .

Steel's acute sensitivity to cash flows and flows in construction as well as manufacturing makes it a closely watched factor for an economy that has begun to slow down since the second quarter of this year. China.

Hitting steel production, property developers have reinvested in projects to save cash amid a financial squeeze by tight borrowing regulations. It is this that has engulfed indebted companies, most notably China Evergrande Group.

Qi Xiaoliang, a steel trader based in Beijing, said: “We usually stockpile steel products in winter at a relatively lower price and sell them after the New Year holiday when consumption is low. come back. But we're just holding out this year."

He added: "The real estate market entering 2022 is still very volatile and the situation is not expected to be completely reversed in the next 6 to 12 months."

In the final quarter of 2021, the real estate market was hit harder as uncertainty in the sector rattled already weak buyer sentiment. Unsold homes in China's 100 largest cities hit a five-year high in November.

Demand for homes is expected to fall further in 2022, and this could affect downstream home product manufacturers, Reuters reported.

Vietnambiz