Price trend

According to data from SunSirs, seamless tube prices remained stable this week. As of the weekend, the price of 108 * 4.5, #20 seamless tubes was quoted at 4,180 RMB/ton, unchanged from the beginning of the week and down 8.83% year-on-year.

Analysis review

The price of raw material tube blanks had partially loosened, and the support for costs had decreased. The seamless tube market price was operating steadily, and the market trading atmosphere was poor. High priced resource transactions were hindered, and downstream enthusiasm for picking up goods was low. The number of trucks arriving had also decreased. The actual release of downstream demand was still relatively slow, and there may be a situation of concession in the later stage.

The market downturn was closely related to raw materials, and iron ore was starting to weaken. The market was concerned about negative feedback from raw materials, and the cost side cannot support tube prices. In December, it entered the off-season of demand, and the fundamentals continued to have a pattern of low supply, low demand, and low inventory. The supply-demand contradiction was not obvious, but it also failed to provide direction for seamless tube prices, making the market performance uncertain.

Market outlook

Overall, it is expected that the price of seamless tubes will remain weak and stable in the short term.

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