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The recovery of precision seamless tube steel prices

Views: 0     Author: Site Editor     Publish Time: 2021-02-15      Origin: Site

The recovery of precision seamless tube steel prices is still in a weak stage


Although the futures market is inseparable from the role of capital, the market for precision seamless pipes in 2016 is different from that in 2015. Changes in the supply side may be the main reason for the increase in prices of the entire black industry chain.


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Recently, the market for precision seamless pipes in first- and second-tier cities has been booming, sales rebounded and investment has rebounded; from January to February, the national real estate development investment reached 905.2 billion yuan, an increase of about 3.0% year-on-year. The area of new housing starts also increased year-on-year for the first time in two years. Among them, the cumulative area of new housing starts in February increased by 13.7% year-on-year. All these indicate that the economy has begun to pick up in 2016 compared to 2015.


In addition to the above reasons for the price increase in the precision seamless pipe industry, institutional data show that as of April 6, 2016, the national steel mill blast furnace operating rate was 77.49%, which has been maintained at 76%~77% for 4 consecutive weeks. The basically stable operating rate shows that the production of rebar has remained stable, but the inventory of precision seamless pipes has declined for four consecutive weeks, totaling about 5.5174 million tons, while the total rebar inventory in the same period last year was 7.3 million tons; The consumption of steel is increasing, so the price of precision seamless pipes is rising as the relationship between supply and demand changes.


In fact, in the spot market for precision seamless pipes, the steel industry does show signs of recovery. Recently, 15 steel companies and 46 equipment manufacturing companies reached an on-site purchase and sale agreement of 1,235,800 tons at the province’s key steel companies and equipment manufacturing companies held by the Hebei Provincial Department of Industry and Information Technology. There are 59 varieties, with an amount of more than 4.9 billion yuan.


However, the overall pattern of losses in the precision seamless pipe industry has not changed. At present, the price of precision seamless pipe steel is still lower than the same period last year. In July, it was 500 yuan/ton lower than the same period last year, in August it was 400 yuan/ton lower than the same period last year, and in September it was 300 yuan/ton lower than the same period last year. For precision seamless pipe companies, if they want to completely get rid of losses, they must not only rely on prices, but also on their own.


Institutional data shows that as of April 6, 2016, the national steel mill blast furnace operating rate was 77.49%, which has been maintained at 76%~77% for 4 consecutive weeks. The basically stable operating rate indicates that the production of precision seamless pipes has remained stable, but the inventory of rebar has declined for four consecutive weeks, with a total of about 5.5174 million tons, while the total inventory of rebar in the same period last year was 7.3 million tons; this indicates that the threaded steel inventory was 7.3 million tons. The consumption of steel is increasing, so the price of precision seamless pipes is rising as the relationship between supply and demand changes.


With the inflow of funds, the price will also fluctuate. However, the current price of precision seamless pipes has made steel mills profitable. With the completion of the steel mills’ overhauls, the possibility of a substantial increase in the later period of precision seamless pipes will be reduced. Not big. It is still necessary to be cautious about investing in the black industry chain varieties in the futures market and do not follow suit.


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