SunSirs: The Market price of Seamless Tube Stabilized with a Small Increase This week （August 3-7）

Price trend

According to statistics from SunSirs, the seamless pipe market rose slightly this week. At the beginning of the week, the price of Seamless tube of 20# and 108*4.5 was reported at 4,347.5 RMB/ton, and at the weekend at 4,372.5 RMB/ton, an increase of 0.58% from the beginning of the week and a decrease of 1.65% from the beginning of the year, down 6.97% year-on-year..

Analysis review

The price of raw material billet increased

This week, billet prices have been raised by 20-70 RMB/ton, and 20 hot-rolled quotations were 3,820-4,200 RMB/ton. As of the 7th, the ex-factory prices of seamless tube plants: Tiangang 20# hot-rolled was 3,820 RMB/ton, Linggang 20# hot-rolled was 4,090 RMB/ton, and Zhongtian 20# hot-rolled was 4,200 RMB/ton.

The seamless pipe price in tube factory

This week, the pipe factory slightly increased the seamless pipe by 30-50 RMB/ton, of which 108*4.5 Jinzhengyang was 4,350 RMB/ton, Jinbaocheng 4,350 RMB/ton, Taizong 4,330 RMB/ton, Ruiganglian 4,300 RMB/ton, Meixin 4,300 RMB/ton.

Seamless tube inventory

The operating rate of 200 production lines nationwide (including 40 long-flow steel pipe plants) was 75.3%, an increase of 0.4% from last week (July 31). The total inventory was 982,000 tons, an increase of 14,000 tons from last week, and a week-on-week increase of 1.45%. Inventory grew for four consecutive weeks.

Market outlook

In summary, the prices of billet and seamless tube plants continued to increase this week, but the market was not actively following the rise. According to seamless tube traders’ feedback, the current demand is limited and there are fewer transactions, with an average of tens of tons per day. The market is weak, and there are still low-cost resources in circulation. The current price is high, and price increases will directly affect sales. Therefore, merchants are often reluctant to follow the increase. The price of Seamless tube is expected to remain stable.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.