SunSirs: The Seamless Tube Market Saw a Slight Increase (May 6-9)

Price trend

According to data from SunSirs, the price of seamless tubes had slightly increased last week. As of the weekend, the price of 20 #, 108 * 4.5 seamless tubes was quoted at 4,110 RMB/ton, a decrease of 0.12% from the beginning of the week and a year-on-year decrease of 11.71%.

Analysis review

Last week, the market price of tube billets had decreased, and the factory price of 20 # hot-rolled tube billets was 3,320-3,380 RMB/ton.

Macro positive news came one after another. The State Council Information Office held a press conference to introduce the relevant situation of "a package of financial policies to support market stability and expectations", boosting market confidence. The market still maintained certain expectations for the future, and at the same time, thanks to rumors of production restrictions, there was support at the bottom of the market. As of May 9th, there were mostly positive news in the market, but it’s needed to maintain a cautious attitude. Firstly, there were no obvious signs of improvement in the industrial sector. Judging from the performance in the past two days after the holiday, the upward drive of seamless tubes was not strong; Although the macro favorable policies had driven the market to be relatively strong, the actual impact on the seamless tube market remained to be observed; Moreover, the outcome of the negotiations between China and the United States was still unknown, which will cause disturbances to the market.

Market outlook

Last week, the national seamless tube inventory was 622,100 tons, an increase of 3,200 tons from the former week. As entering May, the market was in a transition period between peak and off peak seasons, and the demand for end use tubes also entered a downward phase. The overall industry sentiment was not good, coupled with domestic macro policies and disturbances in bilateral economic and trade negotiations between China and the United States, seamless tube prices may not be able to continue to rise in the short term.

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