Price trend

According to data from SunSirs, the price of seamless tubes had slightly decreased last week. As of the weekend,  the price of 20 #,108 * 4.5 seamless tubes was quoted at 4,085 RMB/ton, a decrease of 0.24% from the beginning of the week and a year-on-year decrease of 11.91%.

Analysis review

Last week, the market price of pipe billets had fluctuated, with a factory price of 3,360-3,420 RMB/ton for 20 # hot-rolled pipe billets. Downstream pipe factories had low purchasing enthusiasm and mainly purchased on demand to consume inventory.

On the supply side, the seamless tube factory's inventory this week was 615,500 tons, a decrease of 7,700 tons from last week. Although the steel mill has incurred losses, there was no proactive plan to reduce production.

In terms of demand, the shipment volume of seamless tubes increased this week, while inventory decreased. The apparent demand maintained an upward trend, indicating that the fundamental resilience of seamless tubes was still strong, which had a significant positive impact on seamless tube prices. In addition, inventory was also being depleted, and there was no major contradiction in the overall fundamentals. As the May Day holiday approaching, some terminals had a demand for replenishment, which also had a positive effect on seamless tube prices.

Market outlook

The price of iron ore rebounded, and the cost provided some support for the price of seamless tubes. In addition, inventory was also being depleted, and there was no major contradiction in the overall fundamentals. As the May Day holiday approaches, some terminals had demand for replenishment, which also had a positive effect on the price of seamless tubes. Overall, it is expected that the price of seamless tubes will be stronger in the short term.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.