Price trend
According to data from SunSirs, the price of seamless tubes has remained relatively stable this week. As of the weekend, the price of 20th, 108 * 4.5 seamless tubes was quoted at 4,167.5 RMB/ton, an increase of 0.18% from the beginning of the week and a year-on-year decrease of 11.66%.
Analysis review
This week, the price of raw material billets has remained basically unchanged, with some rising by 20 RMB/ton. The factory quotation for 20 # hot-rolled billets was 3,400-3,480 RMB/ton.
In terms of supply, Guangfu Group's 140 seamless steel tube production line was officially put into operation in March. According to incomplete statistics, the output was about 10,000 tons, and there may be a significant increase in seamless tube production in March. Meanwhile, in the second week of March, the operating rate of seamless tube factories nationwide was 61.21%, an increase of 0.89% compared to last week, and the overall supply side showed a recovery trend.
In terms of demand, although the traditional peak season was approaching, the release of downstream demand was still relatively slow, and the overall market demand performance was average. Some construction sites have had their demands suppressed due to funding issues, and terminal demand was still slowly recovering.
Market outlook
With the resumption of production by some tube factories, there was a trend of increasing supply on the supply side. In addition, the overall performance of terminal demand was not outstanding, and there are concerns about supply-demand contradictions, which cannot support the strengthening of seamless tube prices and cannot escape the volatile pattern. It is expected that seamless tube prices will continue to consolidate in the short term.
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