SunSirs: In February, the Price of Seamless Tube Showed a ‘V’ Trend

Price trend

According to the statistics of SunSirs, in February, the price of seamless tubes fell first and then rose, showing a "V" shape trend. At the beginning of the month, the quotation of 20#, 108 * 4.5 seamless tubes was 5,012.5 RMB/ton, and dropped to 5,000 RMB/ton at the end of the month, down 0.25%, and down 16% year on year.

Analysis review

In the first half of February, after the Lantern Festival, the market resumed construction one after another, downstream inquiries increased, some construction enterprises and traders purchased a small amount, the price of raw material tube blank continued to weaken, and the price increase of seamless tube factory was difficult to sustain. Before the year, the inventory was overstocked, the cost of traders had certain support, and the price fell slightly.

In the second half of the month, the recovery rate of downstream demand accelerated, the overall transaction resumed slightly, and the price of raw material tube blank also increased slightly. Affected by the cost, some seamless tube factories slightly increased the ex-factory price. At the end of the month, driven by the good expectations of the two sessions, the futures market rose sharply, driving the upstream tube blank price to rise for three consecutive days, the seamless tube factory price also followed the rise, the downstream replenishment demand increased, and the tube factory inventory decreased slightly.

Market outlook

To sum up, in February, with the start of construction after the Spring Festival, especially in the second half of the month, the downstream construction rate gradually increased and the transaction improved. By the end of the month, the supply of seamless tube plant was stable, the order was improved, the price of raw materials was rising rapidly, and the steel plant had a strong willingness to increase the price. It is expected that the market price of seamless tube will fluctuate to be stronger in March.

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