Steel Price: Terms & Calculation Method You Should Know

Terms related to steel price

Steel has become a common material in our daily life.

For steel manufacturers and dealers, steel trade is very important, and the steel price is the focus of their daily attention.

There are also many people who suffer losses because they do not know the terms of steel prices when they trade in steel.

Therefore, many people are seeking “what are the terms related to steel prices?”

According to my knowledge of steel, I can tell you that there are mainly 12 kinds of steel terms.

Steel Price: Terms & Calculation Method You Should Know 1

Terms related to steel price

1. Weighing price

The weighing price refers to the method of calculating the weight of steel during the purchase and sale of steel.

The actual weight of steel is directly measured by measuring tools such as weighbridge.

The price of steel sold by the actual weight is the weighing price; The weighing price is also called the weighing price.

2. Measuring price

It refers to that in the process of steel purchase and sale, the method of calculating the weight of steel is the theoretical weight, and the price of steel sold according to the theoretical weight is the gauge price;

The measured price also becomes the adjusted price or the adjusted weight price.

The theoretical weight is calculated according to the theoretical weight of steel.

There are national production standards for steels of various types, materials and specifications. Each steel plant produces various steels according to the national standards.

However, the national standards are not a fixed value, and there is a certain upper deviation, or upper difference, or lower difference (also called negative difference).

Therefore, the upper difference or lower difference of various steels produced by each steel plant is different, resulting in a deviation between the theoretical weight and the actual weight of the steels.

The vast majority of steel products produced by steel plants are inferior.

At one time, the theoretical weight of most varieties of steel is 1 ton, and the actual weight is less than 1 ton.

Therefore, the theoretical weight pricing or the gauge price is lower than the price at the time of Weighing sales.

The lower difference or negative difference is the difference between the actual weight and the theoretical weight of the steel with a theoretical weight of one ton.

Lower difference = (theoretical weight of steel – actual weight of steel) / theoretical weight of steel) * 100%;

For example:

If a factory produces Φ25mm rebar, the theoretical weight is 1 ton, i.e. 1000 kg, and the actual weighing weight is 0.95 ton, i.e. 950 kg, then the lower difference of Φ25mm rebar produced by the factory = (theoretical weight of steel – actual weight of steel) / theoretical weight of steel) * 100% = [(1000-950) / 1000] * 100% = 5, that is, there are 5 lower differences, or directly say that the Φ25mm rebar produced by the factory has 50 kg lower difference.

There are many theoretical weighing phenomena of rebar, welded pipe, seamless pipe, profile, bar and other products.

3. Price including tax

It refers to the price at which the buyer asks the seller for the VAT invoice of the steel products in the process of steel sales;

The VAT rate is 17%.

In theory, if the buyer does not want the VAT invoice, the seller should deduct 17% of the tax money from the tax inclusive price.

However, at present, in the domestic steel industry, the difference between the price of steel and the value-added tax invoice is not so large.

Generally, the seller will give the buyer a 3-4% discount.

At present, the steel price is around 4000 yuan, and the price excluding tax is about 150 yuan lower than the price including tax.

Under normal circumstances, whether or not to issue VAT invoice is referred to as whether or not to issue a ticket.

The price including tax is also commonly referred to as the ticket price, and the price excluding tax is also commonly referred to as the ticket price without tax.

4. Acceptance rate

It refers to that in the process of steel purchase and sale, the buyer does not pay cash to the seller when purchasing steel, but pays in the form of acceptance bill, because the seller has interest expenses when discounting the acceptance bill.

Therefore, the acceptance price is generally higher than the cash price, and the range varies with the change of the discount rate of bank acceptance, and also varies according to the time length of the acceptance bill (generally divided into one month acceptance, three-month acceptance and six-month acceptance).

5. Self-collection price

It refers to the price at which the buyer hires a transport vehicle to pick up the goods in the seller’s warehouse during the purchase and sale of steel.

6. Direct price of steel plant

It refers to the price when the buyer directly orders from the steel plant and delivers it to the place set by the user without spot resources.

7. Advance payment

It refers to the behavior that a steel trading enterprise makes advance payment to a steel factory or large-scale trader and purchases corresponding steel according to the demand in the later stage;

The general price of steel purchased with advance payment is dozens of yuan / ton lower than the price of cash.

8. Bulk discount

When a buyer purchases a large amount of certain steel, the seller may give a discount of several tens of yuan per ton according to the size of the buyer’s order.

9. Listing price

It refers to the open price policy for steel mills or traders to sell certain steel products. In the actual sales process, there may be different degrees of preference.

The sales mode of some steel plants is to set the listing price of the next month’s steel sales at the end of this month.

Order and collect according to the listing price set the actual settlement price of all kinds of steel at the end of this month.

10. Settlement price

The sales mode of some steel plants is to set the listing price of the next month’s steel sales at the end of this month, and  then order and collect according to the listing price set the actual settlement price of all kinds of steel at the end of this month.

The settlement price is the actual cost price of steel traders’ monthly purchase.

11. Market price

There are various steel sales transaction prices in various steel markets.

The prices quoted on this website are the market prices; This price does not include delivery fee, short-distance freight, short-term fund occupation fee and other expenses.

12. Site procurement guide price

Also known as site procurement guide price, it is an original price form of this website.

The site procurement guide price is based on the market price plus delivery fee, short-distance freight and short-term fund occupation fee.

Rebar trading method – difference between adjustment and weighing

Steel Price: Terms & Calculation Method You Should Know 2

Adjustment (also known as measuring ruler) and weighing (also known as weighing) are the two weighing methods in domestic steel trading at present.

Adjustment is to multiply the overall dimension of steel by the proportion of steel to calculate the settlement weight of the traded varieties.

Weighing is the settlement weight obtained by the actual scale.

Although the market generally believes that weighing is not only conducive to regulating the steel trading behavior, but also conducive to the macro-control of the steel industry, it is still widely used at home and abroad due to the convenience of weight calculation (no weighbridge is required).

At present, the limit of the national standard pound difference is that the thread deviation of 6-12mm is not more than 7%, the thread deviation of 14-20mm is not more than 5%, and the thread deviation of more than 22mm is not more than 4%.

However, in the actual process, small steel mills often exceed the national standard deviation, but because of their price advantages, they are often accepted by the terminal, which shows why some markets can continue to operate at low prices.

And the inferior steel bars of small steel mills by weighing have no place to live.

The production cost of small steel mills is higher than that of large steel mills, and they compete with large steel mills by means of ultra negative deviation rolling.

If they are produced according to national standards, the market price is at least 60 or 70 yuan higher than that of large steel mills.

Even if the price is the same as that of large steel mills, users will definitely buy the products of large steel mills instead of small steel mills.

If the steel bars in the Shanghai steel market are also weighed by weighting, many small steel mills will not dare to come to the Shanghai market without cracking down on counterfeits.

The purpose of the state’s macro-control over the iron and steel industry is to eliminate the backward domestic production capacity.

The implementation of weighing will reduce the living space of the backward small steel mills, making them unprofitable and automatically withdrawing from the iron and steel industry.

Steel Price: Terms & Calculation Method You Should Know 3

How to convert the weighing price of steel and the adjustment price?

Adjustment price formula = weighing price * (1-weight deviation)

Weighing price formula = adjusted price / (1-weight deviation)

Under normal circumstances, the actual thickness of the steel plate is less than the standard thickness, and the theoretical weight calculated according to the standard thickness is greater than the weighing weight.

Therefore, the theoretical price of the same product is lower than the weighing price.

For example, if the real thickness of a hot-rolled plate with a standard thickness of 2mm is 1.82mm, the theoretical weight of a steel plate with a theoretical weight of 2T is 1.82t.

If the adjusted price is 4050 yuan / ton, the weighing price is about (2 / 1.82) * 4050 = 4450 yuan / ton, (negative weight tolerance (1.82-2) / 2 * 100% = 9%, 4050 / (1-9%) = 4450.45 yuan / ton)

In general, weighing is to check the weight, and the price is high;

The ruler is adjusted and more heavy than weighting, and the price is lower than the weighing price.

When the volume of steel is positive deviation (the actual weight is larger than the theoretical weight), the adjusted price of the steel shall be higher than the weighing price;

When the volume of the steel is negative (the actual volume is smaller than the theoretical volume), the adjusted price of the steel shall be lower than the weighing price.

In general, steel plate, steel pipe and H-shaped steel are all adjusted, and coil plates such as color steel plate and galvanized plate are all weighed.

Weighing price: 4819.28 yuan / ton

Adjusted price: 4000 yuan / ton

Weighing weight: 0.83t

Adjusted weight: 1T

Rebar weight deviation = (actual weight – theoretical weight) / adjusted weight * 100%

Negative deviation table of steel

Negative deviation of thickness of steel plate and strip (mm)

Steel plate thickness

3~

3.5

>3.5

~4

>4

~5.5

>5.5

~7.5

>7.5

~25

>25

~30

>30

~34

>34

~40

>40

~50

>50

~60

>60

~80

>80

~100

>100

~150

Minus deviation value

0.29

0.33

0.5

0.6

0.8

0.9

1

1.1

1.2

1.3

1.8

2

2.2

Negative thickness deviation of wide wing H-shaped steel (mm)

Section height dimension

H≤220

220<H≤500

550<H

Negative deviation value of flange thickness

1.5

2

2.5

Section height dimension

H≤260

260<H≤700

700<H

Negative deviation value of web thickness

1

1.5

2

Negative thickness deviation of narrow wing H-shaped steel (mm)

Section height dimension

H≤120

120<H≤270

270<H

Negative deviation value of flange thickness

1

1.5

2

Negative deviation of web thickness

0.5

0.75

1

Negative deviation of web thickness of ordinary I-beam steel (mm)

Model

≤140

>140-180

>180-300

>300-400

>400-630

 Negative deviation value

0.5

0.6

0.7

0.8

0.9

Negative deviation of web thickness of ordinary channel steel (mm)

 Model

50-80

>80-140

>140-180

>180-300

>300-400

Negative deviation value

0.4

0.5

0.6

0.7

0.8

Negative deviation of leg thickness of equilateral angle steel (mm)

Model

20-56

63-90

100-140

160-200

Negative deviation value

0.4

0.6

0.7

1

Negative deviation of unequal angle steel leg thickness (mm)

Model

25/16-56/36

63/40-90/56

100/63-140/90

160/100-125

Negative deviation value

0.4

0.6

0.7

1

Negative deviation of steel pipe thickness (mm)

 wall thickness

Hot rolled (extruded and expanded) pipe

Cold drawn (rolled) pipe

 ≤4

>4-20

>20

≤1

>1-3

>3

Negative deviation value

12.5﹪

12.5﹪

12.5﹪

0.15﹪

10﹪

10﹪

Harm of adjustment price of building steel

Steel Price: Terms & Calculation Method You Should Know 4

According to the market, the adjustment price of construction steel has the following hazards:

1. The construction steel for weight adjustment seems cheap, but it is actually much more expensive than that for weighing.

For example, the weight of Ф12-14mm steel bars is 3030 yuan / ton, and the weight of adjustment is 2940 yuan / ton. The latter is 90 yuan / ton cheaper than the former.

However, due to the large deviation of the adjustment price of the reinforcement, for example, the lower deviation of the reinforcement of a steel plant reaches 9%, the adjustment price means that the actual weight of each nominal ton of reinforcement is only 910 kg, which is 3230 yuan / ton when converted into the actual tonnage, which is 200 yuan / ton higher than the weighted reinforcement, rather than 90 yuan / ton cheaper.

2. Building steel weighed by calculation wastes energy.

Some enterprises implement negative tolerance rolling, which often makes the yield of construction steel more than 100%, and some even reach 110% or higher.

That is to say, 1100 kg or more steel is rolled from 1000 kg of steel billet.

This seems to save energy, but it is not.

For example, 100 pieces of steel can be rolled with zero tolerance for 1000 kg billet.

Now, 110 pieces or more can be rolled with negative tolerance, and the extra 10 pieces of steel will consume energy.

3. The rebar price in area a is the lowest in the country through adjustment.

Since the rebars in area A and the surrounding steel market are calculated by weight, the lower deviation rebars rolled by many small steel mills in the north have poured into the Shanghai market one after another, while the rebars in area B are weighed by weight, so the price is often much higher than that in area A.

It is not difficult to understand why some northern steel plants transport steel bars to area A, and the sales price is lower than that of the local area.

Wire trading can only be weighed. Therefore, the price of wire in area A is not lower than that in area B, and sometimes the price is higher than those in area B. Therefore, it can be argued that weighing disturbs the normal market order.

4. Through adjustment, some illegal small steel mills took advantage, while the large steel mills suffered losses.

The iron and steel industry is an industry with economies of scale. Only with a certain economic scale can we control lower costs and obtain reasonable economic benefits.

However, illegal small steel mills are unable to compete with large steel mills in terms of economic aggregate, technical level and management mode.

Therefore, they take advantage of deviation. Large steel mills organize production in strict accordance with national standards and dare not and will not exceed tolerance. Therefore, there is a bottom line for costs.

However, small steel mills reduce costs by cutting corners, which actually encroaches on the interests of large steel mills and users. In essence, it is an act of disrupting the market.

5. Adjustment is not only an air raid shelter for illegal small steel mills with poor quality steel, but also a sunshade for corrupt activities and a hotbed for bean curd dregs.

Since the weight is not measured by weighing, it is impossible to control whether the weight is sufficient, and there is no standard for one more and one less, which provides convenience for off-desk trading.

Recently, the roof of the Russian “dolphin” swimming pool collapsed. According to Russian reports, shoddy workmanship and the use of cheap steel may be the main reasons for the collapse.

According to the user’s reflection, the negative deviation of small-size reinforcement in area A is particularly large, especially the Ф10-14mm small-size reinforcement used as auxiliary reinforcement, most of which have a negative deviation of more than 10%.

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