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What Are The Factors That Make The Chinese Stainless Steel Pipe Market Price Stronger?
Aug 17, 2018

At present, the weather has gradually officially set off, the weather has gradually cooled down. However, the price of seamless stainless steel pipes has maintained a slight upward trend, and has continuously broken through the downstream psychological defence line, what are the factors that make the market price stronger?  


First, the environmental protection policy continues to increase

The environmentally-friendly and limited-production theme continues to flood the seamless stainless steel tube market. According to incomplete statistics, in July alone,  Tangshan, Wenzhou, Lishui many factories producing have been suspended more than 5 times cause the heavy pollution.

 

Second, the raw material market is fully up

Under the influence of the environmental protection policy, the billet resources are in short supply, the production cost is shifted upwards, the steel mills are expected to be good in the market outlook, the willingness to pull up is extremely strong, and the prices of raw materials are rising overall, especially in the billet market, which has been rising recently  . Under the psychological effect of not buying up,  the market price is constantly rising.

 

Third, the domestic inventory mainstream is lower

Fundamental is an important factor affecting the price of seamless stainless steel pipes. The continuous low level of social inventory is greatly conducive to the price increase. Since March, the inventory has fluctuated downward trend, which strongly supports the market price of seamless stainless steel pipes; Under the influence of limited production and maintenance, the national inventory is at a low level. In the case of weak supply and demand, the supply side resources are tenser, and the business mentality is firmer and the attitude is optimistic.

 

In general, environmental protection policies continue to be continuous, billet resources are tight, domestic stocks are at a low level, and multiple favourable factors are superimposed to boost the market psychology of seamless stainless steel tubes. The market price is strong while considering the weather is getting colder, infrastructure investment is accelerating, seamless. The demand for stainless steel pipes has been released one after another, and there is still room for further growth in the future. However, it should be noted that driven by high profits, large and small steel mills will produce more horsepower. It is necessary to pay attention to the changes in the inventory of steel mills and pay attention to avoiding risks.


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    Add:Fl19th,Huameng Business Plaza, No.2 Chezhan Road, Lucheng District, Wenzhou, Zhejiang Prov
    Tel:+86-0577-86008557
    Mob:+8613600679430
    E-mail:marketing@zjzgsteel.com
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