According to data from SunSirs, the price of seamless tubes had slightly increased this week. As of the weekend, the prices of seamless tubes 20# and 108 * 4.5 were quoted at 4,622.5 RMB/ton, an increase of 0.82% compared to the beginning of the week and a year-on-year decrease of 3.75%.
Upstream: The factory prices of some tube billets in steel mills had slightly increased, with a year-on-year increase of 50-120 RMB/ton on a weekly basis. As of November 17th, the market price of 20# hot rolled tube billets was quoted at 4,000-4,250 RMB/ton. The factory price of seamless tubes in China was stable and increased, with some factory prices increasing by 30-100 RMB/ton.
Affected by the fire at the Yongju Coal Industry Joint Construction Building in Lishi District, Lvliang City, Shanxi Province, some coal companies directly quoted an increase of 200 yuan. This news had led to a significant increase in the price of dual coke discs on November 17, which in turn led to another surge in black discs. The sentiment of steel mills continuing to rise had been driven. The expectation of a decline in tube billets was gradually weakening, and some tube factories were gradually replenishing tube billets. This had also led to a continuous upward movement in the average stock price of billets in the tube factories, while the price of seamless tubes wass rising much faster than the rate of tube billets, leading to the continuous expansion of losses in the tube factories and the possibility of forcing them to shut down. However, steel mills were also on the edge of profit and loss, and had the initiative to take orders, even if raw material prices continued to rise. Shandong's mainstream sample tube factories had slightly reduced their shipments, and the market had once again risen and almost reached the high point expected by the market. Traders were gradually accepting the upward trend, but after all, they were still operating with a focus on maintaining regular inventory despite the current low demand season, strong expectations, and weak reality. And the price of the tube blank to the tube factory has basically exceeded the 4000 yuan level, which has strong support for seamless tubes.
It is expected that the price of seamless tubes will stabilize and increase in the short term.
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