Welded pipe sales pressure is still not small

With the gradual recovery of the construction site and downstream demand after the “15th lunar month”, there is a possibility that the steel price will rebound slightly in stages.

The quotations of local traders rose accordingly. It is reported that the rising prices in Tianjin, Tangshan and other surrounding areas are the main reasons for the rise in local prices, but traders report that the transaction situation is still relatively general. Although the inventory has declined slightly from last week, it is still at a relatively high level, and new resources have been added to this month The sales pressure of welded pipe is still not small. Taken together, this increase is mainly driven by raw material prices, but actual demand has not improved, so most merchants believe that the increase will be more limited, and prices are expected to stabilize tomorrow. After the holiday, the downstream release is relatively slow, and the bad demand has become the norm. Some merchants have therefore seldom placed orders, mainly on the sidelines. In the short term, the financial problem still plagues steel trade enterprises, which plays a certain role in restricting the market price of welded pipes. From the aspects of production, inventory, cost and sales, the market price of coke after the holiday continues to be under pressure and there is a greater downside risk. From the metallurgical product output data released by the Statistics Bureau, it can be seen that coke output increased in December, and the annual output of coke was 476 million tons, which was also higher than last year. Although backward production capacity is being eliminated, it is not as fast as the growth of new production capacity. The overall overcapacity situation in the coke industry is still the biggest reason for the coke market’s difficulty in decompression in the short term. It is understood that the coke market in various regions of the country is currently facing oversupply market pressure, and many independent coke companies in major coke production areas, including Inner Mongolia, Shanxi, Shandong, and Hebei, have reflected varying degrees of sales pressure. Among them, Hebei is an important steel town, and the welding pipe resources all flow to Hebei. Hebei has already become a must-have for the military in the coke market. Therefore, the changes in the start-up of blast furnaces of steel enterprises in Hebei area have a greater influence on the coke market in the local and surrounding areas. It can be seen that the rigid demand for coke is still relatively stable. The current downward pressure on coke prices mainly comes from the fact that after the end of the winter storage, steel coke stocks are at a high level, and the demand in the short term is relatively weak. Due to the continuous delivery of goods during the holiday season, but the quantity has been reduced, the stock of steel companies will not fall to a low level.