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The Gap Between Supply And Demand For 304 Stainless Steel Pipes Will Continue To Expand In The Later Period

Aug 08, 2020

It is expected that the hot rolled market will remain weak next week, and the decline may still be 30-50 yuan/ton.

Pipes continued to maintain a downward trend, and the decline in North China has expanded to about 40-80 yuan/ton. In addition, seamless pipe plants such as Shandong have all reduced 50-100 yuan/ton. At present, steel traders in the market have no confidence in the rebound of tube prices, and most of them dare not freely store them in winter. In addition, the inventory of mainstream pipe factories has only increased, and most pipe factories have been slow to reduce inventory, and it is difficult to implement policies such as production reduction and maintenance. Therefore, the gap between supply and demand for 304 stainless steel pipes in the later period will continue to expand, which is difficult for pipe prices. The biggest obstacle to pull up. Of course, the approach of the off-season has also increased the burden on the downstream and middlemen to purchase goods, especially in the poor weather in the north, and trading is even more unsightly. Therefore, pipes are expected to continue to decline in the short term. The mainstream of the special steel market stabilized, and some materials weakly fell by 30-50 yuan/ton. The demand side continues to be weak, but under the support of low inventories, merchants have limited downward space. Overcapacity and high ore prices are topics that have been repeatedly mentioned by the steel industry for many years, but they have not been resolved. At the beginning of the week, due to the relatively low price and the release of replenishment demand from intermediaries, the transaction of 304 stainless steel pipes improved, but the actual demand of end users has not changed significantly, so it is difficult to continue to rise in the later period. Most businesses have a pessimistic view of the market outlook, so there is still room for a certain decline in late-stage prices. It is expected that the 904L white steel pipe will mainly run weakly next week, with a decline of about 20 to 30 yuan per ton.