Price trend

According to statistics from SunSirs, in May, the overall price of seamless tube showed a weak and stable trend. At the beginning of the month, the quotation of 20#, 108*4.5 seamless tube was 6,270 RMB/ton, and it fell to 6,130 RMB/ton at the end of the month, down 2.23% and down 4.89% year-on-year.

Analysis review

On the macro side, news such as the National Development and Reform Commission's emphasis on maintaining supply and stabilizing prices and eliminating malicious speculation in real estate led to a downward trend in the futures market, but the adjustment range was limited. At the same time, the housing provident fund administrations in Beijing, Wuhan, Anyang and other regions successively issued policies to reduce the down payment ratio of personal loans and increase the loan amount to stimulate the activity of the local real estate market, indirectly releasing good news for the medium and long-term development of the steel market.

In terms of supply and demand, the upstream tube billet is mainly stable and weak. Downstream demand has been sluggish. The spot demand has not improved for a long time, which has seriously affected the confidence of the spot market. Low-cost sales, but the effect is still not significant, the downstream is still mainly on-demand procurement.

Market outlook

To sum up, in May, the overall price of seamless tube was weak. At the beginning of the month, with the full resumption of operation of closed toll stations and service areas, the obstruction of cargo logistics improved rapidly, and prices rose slightly. Later, with weaker demand, prices began to pull back. However, under the support of high costs, the pressure of price decline has increased, and it is expected that the domestic seamless tube market will remain weak and stable.

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