SunSirs: The Seamless Tube Market Fluctuated Narrowly This Week (December 9-13)

Price trend

According to data from SunSirs, the price of seamless tubes had remained relatively stable this week. As of the weekend, the price of 20 #, 108 * 4.5 seamless tubes was quoted at 4,180 RMB/ton, unchanged from the beginning of the week and down 9.96% year-on-year.

Analysis review

Although the price of tube blanks had loosened recently, judging from the price difference of tube blanks, the profit margin of tube factories was limited, the pace of terminal demand was slow, and the trading performance of seamless tube market was average, which hindered the transaction of high priced resources.

The market was still in the policy window period, and although the positive news was quickly consumed, there were still important meetings and macro data releases ahead, and the market still had expectations. However, the seamless tube market lacked its own upward momentum. Even if the fiscal space was expanded next year and the economic environment was positive, the tube market still needed to consider the growth space of tube consumption and whether the supply and demand fundamentals can be balanced. In the short term, the market is greatly influenced by macro factors and has achieved a certain increase, but the space may still be limited, and there is still a possibility of market fluctuations.

Market outlook

Overall, the demand during the off-season was lukewarm, social inventory had rebounded, winter storage was approaching, and price action was slightly lacking. It is expected that the seamless tube will experience slight overall fluctuations.

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