SunSirs: Seamless Tube Prices Fluctuated Slightly in August

Price trend

According to SunSirs’ data, seamless tube prices fluctuated slightly in August. At the beginning of the month, the price of 20#, 108*4.5 seamless tube was 4,120 RMB/ton, and fell to 4,102.5 RMB/ton at the end of the month, a decrease of 0.42% and a year-on-year decrease of 2.5%.

Analysis review

Regarding raw materials: Coke prices have undergone their seventh round of price increases, which have been implemented. Coke mills in Shandong Province have implemented significant production restrictions (generally around 30%), resulting in a decline in daily output, which has supported coke prices. This has limited the overall downward trend in raw material costs. Hot rolled tube prices declined at the end of the month. While this weakening raw material supply has alleviated cost pressures at tube mills to some extent, it has also weakened support for finished seamless tube prices..

Supply: Seamless tube supply was significantly impacted by production restrictions in August and is expected to gradually tighten. Tangshan steel mills planned to gradually shut down blast furnaces for maintenance by the end of August, with an estimated 16 additional blast furnaces undergoing maintenance, impacting approximately 116,600 tons of hot metal production per day. This will reduce Tangshan's capacity utilization rate to 78.13%, a 10.7% decrease from August 27. This suggests a potential decrease in the supply of steel products, including billets, in the future.

On the demand side: By the end of the month, the total transaction volume of sample seamless tube traders reached 14,143 tons, a 4.7% decrease from the previous day and a 5.8% decrease from the previous year. With the exception of North China and Northwest China, where transaction volumes saw slight increases, all other regions saw decreases, with the Northeast region experiencing a dramatic 8.8% decline. This reflected a lack of enthusiasm among downstream buyers. As of August 28, downstream users were primarily purchasing small, essential orders, with little speculative demand.

Exports: By July 2025, China's total seamless tube exports were approximately 462,400 tons, with a total export value of approximately $582 million. This year's cumulative exports (as of July) were approximately 3.3947 million tons, with a cumulative export value of approximately $4.145 billion.

Future outlook:

In summary, the end of Shandong coking plants' production restrictions in early September and the actual implementation of blast furnace maintenance will have a significant impact on raw material supply and costs. Whether the traditional "golden September and silver October" peak season arrives as expected and whether downstream demand can be effectively unleashed will be key to market stabilization and recovery. Overall, seamless tube prices are likely to be stronger in September.

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