SunSirs: The Seamless Tube Market Remained Mostly Stable Last Week (February 2-6)

Price trend

According to data from SunSirs, seamless steel tube prices remained stable last week. As of the end of the week, the price of 20#, 108*4.5 seamless steel tube was 4,080 RMB/ton, a year-on-year decrease of 3.03%.

Market analysis

Last week, prices in the steel billet market experienced slight declines in some areas. The ex-factory price for 20# hot-rolled steel billets was 3,240-3,310 RMB/ton. Some small and medium-sized steel billet manufacturers had already suspended operations for the holiday period, while large and medium-sized steel mills maintained stable operating rates. The price adjustments made by Linyi Steel Investment were primarily based on their own inventory turnover and year-end considerations before the holidays, and did not reflect widespread industry-wide pressure from increased production capacity.

With the Spring Festival approaching and downstream industries gradually ceasing operations for the holiday, market sentiment was cautious. Raw material prices were fluctuating but generally weak, providing limited support to finished steel prices. On the supply side, some tube manufacturers had shut down for maintenance ahead of schedule, leading to a slight decrease in operating rates, but market supply remained ample. On the demand side, downstream industries were entering the final stages of shutdown, with projects suspended and procurement plans delayed, resulting in a significant lack of end-user demand.

Market outlook:

Overall, market sentiment was characterized by "cautious observation and inventory management for the winter." Both buyers and sellers were focusing on stable operations, with traders actively reducing inventory and tube manufacturers controlling production capacity. There were temporarily no large-scale stockpiling or expansion activities. It is expected that the national seamless tube market will continue to operate in a stable but weak fluctuating pattern over the next 1-2 weeks, with limited price volatility.

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