The steel pipe price swings down

First, market review

Clinch a deal this week pipe were mixed, general, amplitude in 20-150 yuan/ton. This week as the original strip slightly pull up, and filled by any parts of the resource factors, have raised prices, or limited, operation is not active, some steel mills feedback of finished material sales difficulties, continued to rise, negative downstream reaction, inventory released more slowly, may lower the market price again. Current production is difficult to drop, inventory of thousands of cases, and money, loans, continued demand and traders to reduce, will suppress market price is higher, to a certain extent continuously lower the market price. Tepid and real estate industry, though stimulus, but the real estate investment, as well as new capacity is not very high, very difficult to drive the tube quantity. So next week is expected to pipe prices or weak in stability, small parts, drop around 30 to 50 yuan/ton.

Second, the profit space analysis

Domestic seamless tube market average price from 3420 yuan/ton last week fell to 3418 yuan/ton, down to 2 yuan/ton; Domestic tube billet market average price from 2440 yuan/ton last week fell to 2436 yuan/ton, down to 4 yuan/ton, raw material smaller fall this week, tube factory pricing carefully, or smaller. Domestic welded pipe market average price of 2725 yuan/ton last week fell to 2701 yuan/ton, down at 24 yuan/ton; Raw material strip from last week’s average price 2433 yuan/ton fell to 2412 yuan/ton, have gained 21 yuan/ton; Raw materials rose after the fall, or smaller, and the market demand is still weak, high specification shipment is blocked, so businessmen downstream procurement pricing initiative stimulation.

Three pricing, steel mills, summary and analysis

Pipe mill this week cut the indefinite, seamless pipe dimension steady shipment, the actual clinch a deal more dark down sales; Welded pipe and larger differences, different pricing, the main reason is that raw material strip up before they fell this week, and the market by the environmental protection, new resources less, filled by any part of the resource, so businessmen to take this opportunity to raise the price of tube drained. And after some pull up, the downstream procurement is not active, some steel mills feedback of finished material sales difficulties, continued to rise, negative downstream reaction, inventory released more slowly, may lower the market price again. Small pipe market or next week is expected to continue to fall, the decline is limited.

Four, trend forecasting and operation suggestion next week

1. Trend anticipation next week

In the first quarter economic growth of a new low in six years, in line with the overall expectations; Other countries for investment in several sectors have retraction, real estate, steel, cement and other industries, in particular, plus bank credit serious, makes a lot of small tube factory management difficulties, the market is in a state of war, for relatively disordered. In the past, “silver four” seemed almost demand and downs, but didn’t make much impact on the market, in contrast, the south, rainy, mainstream more bearish traders to reduce inventory. For the trend of late, still depends on the needs of the state; As for the cost of raw materials, should be maintained at between 1900-2000, so for the finished tube, the impact of limited ability. Domestic pipe market will remain concussion running next week and amplitude fluctuation of about 20-40 yuan/ton, the south more tends to decline.

2. Operation Suggestions

Poor environment, demand and limited; Plus variable cost, the manufacturer in and out of time shoulds not be too long. Should take small orders straight hair is good; Additionally reduce production, adjust the industrial structure is the top priority, should no longer compete on price.