Research On The Method Of Controlling Construction Cost Based On Construction Steel Price Fluctuation

The procurement cost of engineering materials accounts for more than 60% of the total project cost,of which steel costs account for 60% of the material cost.As a cyclical industry with overcapacity,the steel industry fluctuates sharply in different stages of the economic cycle,which causes construction enterprises to face huge uncertainties.Therefore,studying steel price fluctuations is of great significance to construction enterprises.The purpose of this paper is to improve the ability of construction companies to control material costs by studying the fluctuation law of rebar prices and using spot procurement and hedging.In this paper,the basic analysis method and technical analysis method are combined with the research method,and the RIS index technical analysis,vertical cost analysis,and horizontal group color analysis are adopted.The results show that there is a strong correlation between rebar,coke and iron ore prices from 2015 to 2018,where the correlation coefficient between rebar and coke is 0.966,and the correlation coefficient between rebar and iron ore is 0.705.Through the single-variable RSI analysis of rebar price,the correct prediction rate of price band is88%.Through group color analysis,the correct prediction rate of price band is 84%.Through RSI correction,the correct rate is improved to 90.9%,which is good.Predictive effect.In the case,the application of the research results of this paper reduced the loss of the company to 14.73 million yuan.This paper provides a method for the spot inventory management of construction enterprises and the choice of timing hedging,which improves the ability of construction enterprises to cope with the drastic changes in steel prices.