Stainless steel pipe prices rebound on schedule

Domestic hong kong-listed after July, low prices, due to the shrinking of market supply, the hong kong-listed rebounded in August. And in the maintenance increases, falling inventories, needs a stable environment, prices have rebounded. First of all, according to data business clubs, August steel plant maintenance, among them, the daily average impact 8.5 90000 tons of hot metal, month-on-month increases 2-30000 tons; Affect the medium plate production 360000 tons, 400000 tons of hot roll, month-on-month increase 14 and 90000 tons; Signal average daily output of 10000 tons, thread 21600 tons, the basic level in July. So the overhaul increase, supply decrease, the price rise.

Second, due to the strength of the raw materials of iron ore price stabilization, and the loss of market supply, lead to steel mills raised ex-factory price in August, and earnings rebound, starts slightly increased. Monitoring data show that the mainstream steel wan port of stainless steel pipe price increases accumulated in August 300-310 yuan/ton; Baosteel steel mills have different degrees of follow suit to raise prices. So the market prices are flawed, rose at a high speed. Accordingly, steel mills to return to work is also increased. According to the business club, according to data as of August 28, in samples of 163 steel mills, starts back up to 80.94% (continuous rise in six weeks, compared to the first half of the year is still low); Profit steel ratio is back up to 24.54%. So the market supply increases in late August, prices began to reverse downward.

Third, by the end of August, the five major social inventory eight notches to 10.5933 million tons of steel, back to the early levels. And steel stocks also obvious decline (as of mid-august is 15.4457 million tons, fell 1.2 million tons), reflecting the destocking market effect is remarkable, good prices.

Finally, according to the national bureau of statistics data show that in July 1, 2015, the national real estate development investment growth than 1 – fell 0.3% in June, fallen further narrowed. The new starts the accumulative area of the building fell 16.8% year on year. Compared with the national building to undertake new ship orders fell 71.5% year on year, fallen also further narrowed; Color ice wash empty output growth was 2.9%, 1.2%, 2.9% and 1.2% respectively; Car production and sales year-on-year increase of 0.8% and 0.39% respectively. So the downstream market demand has always maintained a steady growth, good steel price.

So for hong kong-listed in August, the market supply of sustained high support, to reduce the costs and raw material is the key factor for the price quotation. But as a result of market demand, slow growth (in the first half of 2015, the national 410 million tons of crude steel output and apparent consumption of about 360 million tons, fell by 1.3% and 1.3%) and industry profits shrink (according to the international bureau of statistics, in the first half of 2015, large and medium-sized iron and steel enterprise main business losses of 21.68 billion yuan, ZengKui 16.768 billion yuan), led to a low volume on the market, and reproduced at the end of the price decline. Therefore is expected to “the gold September” good coming ahead of time, or to decline start September market.