Slack season market of steel pipe

Within a week, the key cities five varieties of steel apparent consumption of 10.1613 million tons, week on week reduction of 383,700 tons, a decrease of 3.6%. With the decline in consumption of pre galvanized steel pipe, steel inventory continued to increase, five varieties of steel inventory total 21,537,500 tons, week on week increase of 436,800 tons, an increase of 2%. At the same time, steel prices also continue the downward trend. The industry said that the current steel market off-season characteristics have been relatively obvious, in the last one or two weeks, the steel market has obvious off-season characteristics, that is to say, the inventory rise, the price has fallen, the market price in different regions dropped dozens to 100 yuan or so. The inventory has been rising for 4 consecutive weeks, and the inventory pressure caused by the rise is still relatively large, so the market has a short-term adjustment trend.

It is worth noting that steel inventories are rising against a backdrop of reduced supply. Affected by the maintenance of steel pipe manufacturers and the limit of environmental protection, the output of five varieties of steel in a week was 10.5981 million tons, a decrease of 508,700 tons week on week. The new week, many overhaul steel mills will resume work, steel supply pressure may be greater. “Demand is starting to shrink and there is still no significant adjustment in supply,” the industry insider said. In this case, the supply of pressure is large. But we think that in the coming period of time, if some regions have to reduce the steel production such as square steel pipe, it will help ease the supply pressure on the market and help stabilize the market.”

The rainy season and high temperatures are expected to continue for some time. Experts predict that steel demand may further shrink next, the market may continue to shake down. But the cost of support, steel prices space is limited, “is faced with an embarrassing situation, that is to say, the price of steel and steel mills has been basically close to the cost, the market price at this time of the resistance is stronger, so we estimate that in the coming 1-2 weeks, steel prices are still the continuation of a disadvantaged consolidation, But the decline is supported by costs, so the room for decline of zinc coated steel pipe is limited.”
Indeed, from the raw material market, iron ore, coke and scrap prices remain stable as a whole, and there is no obvious price reduction because of the arrival of the steel market off-season. Industry analysis, in the cost and product market extrusion, the steel market is difficult to appear in the near future, the market is afraid to start again after the end of the off-season.