The steel pipe market fluctuated in January

Looking back at the steel market in 2019, there is a judgment that is in line with expectations. Although the trend of China hollow section is no longer coming, it is also “happiness comes from worry”.There were also big surprises, black swan events in iron ore, and high growth in steel production and sales. In 2019, the average price of steel composite price index dropped 6.5% year on year, while the average price of imported iron ore index was 93, up 34.6% year on year. Although the profit of the steel industry dropped 42.3% in the first month of November, it still maintained the historically good performance, which was not easy to achieve in the context of increasing downward pressure on the global economy.

Looking ahead to the steel market in 2020, although it may be a year of “climbing over the hill”, it may also be a year of “overjoyed”. Although there exist many uncertainties in the global economy, even under pressure, we can still be seen in many countries around the world under the stimulus of fiscal and monetary policy, especially under the background of increasing countercyclical regulation in China, the Chinese steel industry of structural steel pipe is struggling to climb the effective capacity increased slightly, the supply and demand growth, quality, and the efficiency of the slope, at the same time, also want to actively across the “phased prices even slight loss”.

The average daily output of mild steel tube of 247 enterprises surveyed by steel union was 61,100 tons higher than that of the same period last year, and the weekly output of 5 varieties surveyed by steel union was 10.34 million tons, 640,000 tons higher than that of the same period last year. There are three main reasons for the slightly higher year-on-year output in January. At present, the long process enterprises are still basically profitable, some regions of the steel pipe suppliers profits are even considerable, steel mill production enthusiasm is not reduced, the short process enterprises are still slightly profitable, it is estimated that to the end of the first half of January, it began to increase the maintenance efforts.Second, environmental protection does not do “one-size-fits-all” to supply pressure relief, some areas even did not limit production in autumn and winter.There is a later view than the same period last year optimistic, boost production enthusiasm.Last year a lot of steel mills in January is still more pessimistic, and this year the general to be cautiously optimistic, the enthusiasm of production is obviously higher.