Price trend:

According to data from SunSirs, seamless steel tube prices remained largely stable with minor adjustments last week. As of the end of the week, the price of 108*4.5 seamless steel tube was 4,060 RMB/ton, up 0.25% from the beginning of the week and down 3.96% year-on-year.

Market Analysis

Last week, the billet market remained weak, dragged down by the decline in ferrous metal futures, which exacerbated the wait-and-see attitude in the market. Downstream end-users and intermediaries showed a significant decrease in their willingness to purchase and replenish their inventories, resulting in a low level of transaction volume. Some traders proactively lowered their quotations to facilitate transactions, leading to a general decline in prices.

The seamless steel tube market was characterized by cost pressures and weak supply and demand. tube mills were maintaining low production and low inventory levels, with a strong demand to maintain prices; while traders, holding previously locked-in inventory, were primarily focused on selling off their stock in the face of market corrections and declining raw material prices.

Market Outlook:

In summary, the lack of new macroeconomic stimulus, the less than 50% probability of a Fed rate cut in December and the potential for a slower pace of further cuts, coupled with a domestic policy vacuum, were all limiting the upside potential of seamless steel tube prices. Fundamentally, there were no major supply-demand imbalances, making a sharp price drop unlikely. Seamless tube prices are expected to remain stable in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.