SunSirs:The seamless Tube Market Was Mainly Stable Last Week (November 10-14)

Price trend:

According to data from SunSirs, seamless tube prices remained stable last week. As of the weekend, the price of 108*4.5 seamless tube (20# grade) was 4,050 RMB/ton, unchanged from the beginning of the week and down 5.43% year-on-year.

Market Analysis

Last week, billet prices remained stable, with the ex-factory price of 20# hot rolled billet at 3,240-3,330 RMB/ton. Entering the traditional off-season for demand, steel mills were increasing maintenance shutdowns, leading to lower inventory levels. Market demand was primarily driven by immediate needs, and raw material prices were providing some support, keeping steel mill profits low. However, recent market demand was weak, making it difficult for spot prices to rebound.

The market continued to be constrained by weak supply and demand, exhibiting typical seasonal demand contraction characteristics. Inventory reduction was slow, making it difficult to effectively boost seamless tube prices. As of November 14, tube mill profits were shrinking, coupled with environmental protection-related production restrictions, leading to a decline in enterprise production enthusiasm. On the demand side, seasonal factors were affecting end-user demand, which was showing a marginal weakening trend.

Market outlook

Overall, the market was in a stalemate. The core contradiction in the market lay in the interplay between strong expectations and weak reality. Before a fundamental improvement in the economic situation, seamless tube prices are expected to remain stable in the short term.

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