Growing Phenomenon of 'The poor-get-poorer and The richer-get-poorer' in HR Processing Sector

摘要

Although most domestic steel service centers (SSCs) had enjoyed the unprecedented booming business performance in the first half of this year thanks to the twice-increased price for hot-rolled coils (HR) and the fluctuation in raw material supplies, consumer sentiment in the domestic market for construction materials dampened by the monsoon rains and sultry weather since June is showing no signs of any recovery. Overall domestic economy is still in a slump, but those HR SSCs whose key customers are large-scale end-users dealing in industrial products in such sectors as auto and shipbuilding appears to be aware of no business slowdown at the least. Exceptionally, some HR processors who are doing business on a commission basis with makers of construction materials and small and medium-size machinery are having difficulties due to material supply shortages and continuing delay in the settlement of payments.