From a macro perspective, the Sino-US trade war has officially started, and the seamless stainless steel tube market has increased concerns about systemic risks, but the state may adopt internal stimulus measures for hedging trade war pressure; from the industrial level, as high temperature weather continues, the terminal Demand continued to weaken, supply remained at a relatively high level, supply and demand for seamless stainless steel pipes evolved toward marginal weakness, but inventory remained low, and the contradiction between supply and demand was not prominent. For the market outlook, we believe that the price of seamless stainless steel pipes may continue to oscillate.
Sino-US trade war officially started
Last Friday, the United States announced a 25% tariff on the $34 billion Chinese product, and China’s equivalent counter-measures also landed. The spokesperson of the Ministry of Commerce of China issued a speech at the first time, saying that China had to make necessary counterattacks in order to defend the core interests of the country and the interests of the people. The Sino-US trade war has caused market worries for many months. This boots have raised or aggravated the concerns of the seamless stainless steel tube market to further upgrade the future trade war.
Although China's direct export of steel to the United States is very small, it is almost negligible, but considering that trade war is a systemic risk or impact on China's real economy, which in turn affects the end consumption of the entire seamless stainless steel pipe. The trade war has undoubtedly had a large negative impact on the seamless pipe market. As the trade war continues, this negative impact may become more apparent, and the concerns of the seamless stainless steel pipe market are still likely to increase.
The Sino-US trade war will undoubtedly have a negative impact on the macro economy. It is not ruled out that the future countries will adopt internal incentives to ease the impact of trade wars.
The off-season effect of consumption appears
As the weather in the country gradually turned hot, the impact of the off-season on the consumption of seamless stainless steel pipe terminals gradually appeared, and the market transactions showed a gradual downward trend. It can be clearly seen that since April, the volume of seamless stainless steel pipe terminals has shown a gradual downward trend.
This year, there were more rains in East China in June, and there were not many high-temperature weather days. With the end of the Meiyu season, the high temperature weather will be ushered in the late East China region. The high temperature will have a greater restriction on the downstream construction demand, or the demand for seamless stainless steel pipes will be triggered later. Continue to weaken.
In terms of supply, although some steel mills were overhauled in the early stage, the decline in seamless stainless steel pipe production was not obvious. It can be seen that although the steel mill's traditional maintenance season is still high, the profit of the seamless stainless steel pipe is still high, the steel mill has high production enthusiasm, the maintenance progress is accelerated, and the production methods are various, and the actual production decline is not obvious. Considering that the daily average crude steel output in the table has been constantly rising to a record high, even if there is a fall, the overall supply remains at a high level.
Judging from the situation of both ends of supply and demand, the demand for seamless stainless steel pipes has continued to weaken, while supply remains at a high level, and there is still marginal weakening pressure on supply and demand. However, it should be noted that the current inventory level is still at a low level, and the contradiction between supply and demand of seamless stainless steel pipes is still accumulating.
Seamless stainless steel pipe stocks are still rising
Last week, the seamless stainless steel tube society and steel mill inventory doubled down, which ended the two-week recovery of inventory, which eased the market's worries to some extent. The inventory growth is suspended and repeated, but combined with the previous supply and demand, the accumulation process of seamless stainless steel pipe inventory may continue.
In summary, benchmark stainless steel believes that the price of seamless stainless steel pipe may continue to oscillate. From a macro perspective, the Sino-US trade war has begun, and the market has become more concerned about systemic risks. However, the state may adopt internal stimulus measures for hedging trade war pressure; from the industrial level, seamless stainless steel pipe terminals continue with high temperature weather. Demand continues to weaken, but the contradiction between supply and demand is not prominent.
Links : Welded Steel Pipe Seamless Carbon Steel Pipe Oil Country Tubular Goods
Alloy Steel Pipe Stainless Steel Products Galvanized Steel Pipe
Pipe Fittings and Flange Structural Steel Section Coated Carbon Steel Pipe
