SunSirs: The Seamless Tube Market Was Stable This Week (November 2-6)

Price trend

According to statistics from SunSirs, the seamless tube market was mainly stable this week. At the beginning of the week, the price of seamless tubes of 20#, 108*4.5 reported 4352.5 RMB/ton, which was the same with the price at the beginning of the week, down 2.1% from the beginning of the year and 2.1% year-on-year

Analysis review

The price of raw tube billet rose

This week, the main domestic pipe rings increased, the increase range was 30-80 RMB/ton, and the main price of 20# hot-rolled billet was 3820-4280 RMB/ton. As of the 6th, the ex-factory prices of the seamless tube factory: Tiangang 20# hot-rolling price was 3,820 RMB/ton, Linggang's price was 4,050 RMB/ton, and Zhongtian's price was 4,250 RMB/ton.

The seamless tube price of tube factory was raised

This week, the pipe factory prices will increase by 20-50 RMB/ton. Among them, 108*4.5 seamless tubes, Jinzhengyang 4,350 RMB/ton, Jinbaocheng 4,250 RMB/ton, Taizong 4,200 RMB/ton, Ruiganglian 4,200 RMB/ton, Meixin 4,180 RMB/ton.

Seamless tube inventory

The operating rate of 200 production lines nationwide (including 40 long-flow steel pipe plants) was 79.5%, an increase of 0.9 percentage point from last week (October 30). The total inventory was 903,500 tons, a decrease of 15,900 tons from last week, and a decrease of 1.79% on a week-on-week basis.

Market outlook

In summary, although the prices of raw tube billets and tube mills are increasing, the current market demand is far below expectations. In addition, the long-term continuous high inventory under the high output of steel mills and tube mills has created resistance to the later price increase. Therefore, the overall market sentiment is relatively low, mostly bearish. Supply and demand are weak, and domestic seamless pipe market prices are expected to be stable in the short term.

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