Briefly analyze the factors that have recently dominated the domestic welded pipe market
Briefly analyze the factors that have recently dominated the domestic welded pipe market
At present, the upstream cost support of China's welded pipe market is insufficient, the release of downstream demand is blocked, and the output is still high. In the absence of favorable stimulus, the welded pipe market will remain weak in the short term.
1. The price of welded pipe will continue to be weak:
Recently, China has introduced a number of “micro-stimulus†policies, including accelerating railway investment, shantytown transformation, increasing support to small and micro enterprises, and issuing stable foreign trade growth policies. Although the domestic economy has shown signs of stabilization in the short term, it is still generally depressed. The market’s expectations for economic deflation have not changed, and commodity prices such as welded pipes have continued to weaken. Crude steel output is high, the demand for welded pipe market is sluggish, and the credit industry in the steel industry is tightening. The prices of raw materials such as iron ore are falling, and the overall environment of the welded pipe market is still weak. Affected by the above various unfavorable factors, the market pessimistic attitude is still strong, and the price of welded pipes will continue to be weak.
2. Reduce production costs by increasing production:
In order to retain market share, the welded pipe market has reduced production costs by increasing production. Therefore, although the production profit margin of the pipe factory has been meager in recent years, there is no obvious plan to reduce production. Short-term welded pipe supply pressure is also difficult to reduce significantly, and the continued decline in social inventory will continue to support the market price of welded pipe, which can also alleviate the financial pressure of merchants.
3. The upstream billet and strip market continued to be weak:
The upstream billet and strip market continued to be weak, which made the pessimistic sentiment in the welded pipe market worse. As a result, the ex-factory price of welded pipes in most areas was slightly reduced. Zhangzhou Lianyu Steel Pipe (acoustic test tube manufacturer 15231769003) said that from the current seasonal shortage of demand, the price increase is still difficult. Although some areas have insufficient support for the purchase of strip steel, the spot price of the welded pipe of the pipe factory is not sufficient, but the ex-factory price is difficult to maintain.
4. The demand season is affecting the welded pipe market:
From the demand side, it is a fact that the demand in the off-season is not good. “Buy up and not buy down†is a psychological phenomenon, which has caused the market to sell at a low price. Nowadays, it has entered the low season of traditional welded pipe consumption. Due to the gradual high temperature, the south will enter the rainy season, and the national real estate market continues to be weak, and the demand for welded pipes may further weaken. However, considering that infrastructure projects including railways, water conservancy, and shantytown renovation are still accelerating, improvement is expected, but the degree of improvement is rather limited.
Overall, the price of welded pipes in the third quarter of this year is still dominated by weakening.
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Editor: (Hardware Business Network Information Center) http://news.chinawj.com.cn
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