we should grasp the new situation of steel pipe market

Last week, the domestic steel market showed a general trend of first suppression and then uplift. As the market gradually digested the news, market prices of rectangular hollow section stopped falling and stabilized in the second half of the week, and some prices rose slightly. From the recent market, the domestic steel market overall presents a high output and strong demand. On the one hand, domestic steel production is at a high level. In April, crude steel, pig iron and steel production all reached a new record high.On the other hand, downstream demand has been strong, with stocks continuing to fall in the domestic market and steel mill orders generally normal, reflecting the overall positive performance of steel demand in the current record supply of resources. From the economic data, the real estate demand is still an important factor to support the current steel demand, according to the statistics, April 1 – real estate development investment of 3.4217 trillion yuan, up 11.9% year on year, growth is 1-0.1% increase in March, for three consecutive months of growth picks up, housing construction area, the new construction area, sales area and capital indexes such as well;Infrastructure investment of galvanized steel pipe grew 4.4 percent year on year, unchanged from January-March.

pre galvanized pipe

This week’s strong futures market or a strong shock market have no obvious contradiction between supply and demand. steel costs rise significantly, the market cost price support is expected to further increase, but in supply high, weakening demand, inventory to lower the height of the slow, the futures market or have to rush back to bring up now, steel spot market mood will quickly show weakness, steel prices or weak turbulence.Raw fuel prices continue to perform strong volatility trend. Among them, the price of building materials of square steel pipe shock weakness; Profile price shock adjustment; Belt, plate price shocks down slightly. Iron ore prices rise in shock;Scrap price small shock;Alloy price weak shock adjustment;Coke prices may start the third round of 100 yuan/ton increase.

This week’s focus: volatility in the iron ore futures market;The adjustment and change of domestic economic policy in response to the imposition of tariffs on the United States; Whether the total stock of the main steel products will be increased from decreasing to increasing;Coking production limit in shanxi and other regions;Foreign ore shipments to port and port inventory increase or decrease. In April, the national economic operation within a reasonable range have confidence in the steel market, but with the advent of demand off-season, the downstream demand will gradually weakening, decline speed of steel social inventory of round steel pipe is slow, rolled steel production record will also be suppressed and the escalating a trade war with China and the implementation of the environmental protection policy of restricting output effect will be the market uncertainty.

 

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Post time: Aug-24-2020
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