Supply pressure highlights the slack pipe market

The performance of the relevant stock period are lukewarm. Data showed that the chain futures index of black industry fell 1.05% in September. Industry sources said that the current signs of steel supply pressure of structural steel pipe will continue, so the trend in October is still not optimistic. After entering November, under the premise that the price has fallen to a lower position, the actual terminal demand is superimposed with the demand for winter storage, and the price trend of steel market is expected to strengthen.

The market is tepid
black department futures continued the overall trend of the downturn. By the end of the day, the index of black industrial chain futures was down 0.31 percent, according to wenhua finance & economics.Rebar main 2001 contract fell 2.32 percent to 3,404 yuan/ton;The main hot volume futures 2001 contract closed at 3416 yuan/ton, down 1.84%; Stainless steel main 2002 contract fell 0.13 percent to 15,675 yuan/ton. Iron ore futures held up relatively well, with the main 2001 contract closing 0.77% higher at 657 yuan a tonne. Black futures have been showing signs of weakness recently.The index of black industrial chain futures fell 1.05 percent in September, hitting three consecutive negative monthly levels. A – share steel plate of galvanized steel pipe also recently performed poorly. The shenwan steel index fell 0.34 percent in September, hitting its sixth consecutive negative monthly reading, according to Wind.

September is the peak demand season of China hollow section tube in the steel market, as well as the peak supply season.Supply pressure in the steel market has increased significantly this year compared with last year, with steel inventory levels rising to a record high in August. Since September, steel inventories have been somewhat depleted, but the underlying pressure on the supply side has not disappeared, which has become the core factor weighing on steel prices.Under the background of weak steel price oscillation, the stock of steel plate presents a tepid situation. At present, the steel market supply pressure will continue, the trend should not be optimistic, unless there is a substantial increase in demand. Steel consumption is concentrated in real estate and infrastructure projects, but real estate investment is likely to continue its downward trend in the fourth quarter. Although steel pipe suppliers are expected to rebound, it is expected to be difficult to effectively boost the steel market. It was unlikely that the steel market would reverse in October.