Shandong steel price is difficult to boost 20# small diameter seamless steel pipe supply and demand

  Demand for steel in the domestic market is weak. At the same time, the growth rate of the main steel industry continued to decline. Steel production adhered to a high level, and the steel market still showed a situation of oversupply, so steel prices continued to fall in May. China Iron and Steel Association on the 19th reported that, taking into account the central government has established as a dependable growth austerity objectives, expected domestic demand is expected to continue to grow, but by the imbalance between supply and demand control the market, steel prices difficult to have greatly improved, 20 # seamless steel pipe In the later period, steel prices will continue to fluctuate at a low level. Weak domestic demand, domestic steel prices fell to a 17-month low In the case of weak demand in the main steel industry, raw material prices fell, and crude steel production is still at a high level, domestic steel prices continued to decline in May. According to the latest data, China Steel Industry Association's CSPI steel composite price index was 117.52 points, down 3.67 points month on month, a decrease of 3.03% compared with the same period of last year, a decrease of 18.41 points, a decrease of 13.54%. China's steel price composite index fell to 17 The lowest in the month, 20# seamless steel pipe and last March was lower than the same period of last year, but the same quarter-on-quarter decline was slightly narrowed. In May, domestic steel prices continued to decline year by week, and the prices of major varieties in the spot market declined, but the decline continued to narrow. Among them, the decline of long products is higher than that of the plate, the index is 121.38 points and 115.44 points, the decrease is 3.57% and 2.83% respectively. Among the main varieties monitored, the high line and rebar have a large decline, down 4.52% and 4.46% respectively. The decline of hot-rolled coils and plate is also obvious, with a decrease of 2.95% and 3.96% respectively. It is not only the decline of domestic steel prices, but also affected by the decline in the growth rate of manufacturing industries in Europe and the United States. In May, the international steel market price also rose from the previous month. drop.


Among them, the price of long products remained stable, but the price of sheet metal decreased significantly; compared with the same period of last year, long products and plates were relatively obvious. In addition, steel prices in the North American and European markets generally declined, and only the prices of small and medium steels in the Asian market increased. Manufacturing growth rate continues to fall, market demand growth is weak. According to a series of data released recently, the growth rate of domestic and foreign manufacturing industries has generally declined, and the demand for downstream steel 20# seamless steel pipes is facing greater pressure. According to the National Bureau of Statistics, from January to May, national fixed asset investment and real estate development investment increased by 20.1% and 18.5% respectively compared with the same period in January-April. In the main steel industry, the growth rate of major steel industries such as general equipment manufacturing, automobile manufacturing, railway and ship and other transportation equipment manufacturing, electrical machinery, and electric power, heat production and supply industries continued to decline. In the same period, China's manufacturing PMI was 50.4%, down 2.9 percentage points from the previous month. The new orders and new import orders index were 49.8% and 50.4%, down 4.7 and 1.8 percentage points from the previous month. The growth rate of the steel industry continued to fall, and the demand for steel 20# seamless steel pipes in the domestic market was weak. It is worth noting that the economic growth of developed economies such as Europe and the United States declined in May, and the multi-country manufacturing index fell, making the demand for the international steel market also showing a downward trend.


The China Iron and Steel Association report pointed out that with the economic growth of European and American countries slowing down, the double anti-friction in international trade is gradually increasing, and the difficulty of importing steel products in the later period will increase. In the absence of rising power, the steel market will still be shaken at a low level to meet the “steady growth” regulation target. The country has recently launched a number of infrastructure projects that are related to the overall situation and are driving strong. At the same time, financial subsidies of 36.3 billion yuan were also arranged. 20# seamless steel pipes promote consumption of energy-saving appliances and automobiles, and enhance consumption's role in driving economic growth. In addition, the central bank has lowered the deposit and loan benchmark interest rate on June 8. The pre-adjustment and fine-tuning at the national policy level will promote the steady and rapid development of China's economy. With the implementation of the policy of expanding domestic demand, domestic steel demand is expected to continue to grow. Although the daily output of crude steel fell in May after a four-month increase in the chain, it was still higher than the average of the previous four months. According to the statistics of the Bureau of Statistics, the average daily output of crude steel in the country was 1,975,300 tons in May, a decrease of 43,700 tons, a decrease of 2.16%. In addition, the cumulative investment in fixed assets of the national steel industry in the first five months was 204.4 billion yuan, up 11.7% year-on-year. In the same period, the average domestic daily average crude steel consumption was 1,842,100 tons, and the 20# seamless steel pipe was reduced by 52,100 tons.


Under the situation of further slowdown in domestic market demand, steel production has remained at a high level, and new capacity has been released rapidly. The situation of oversupply in the 20# seamless steel pipe market has not changed, and the competition for product homogenization has become more intense. Considering that the country's economic growth has declined, it is still higher than other major economies in the world. Coupled with the central government's "steady growth" in the more important position of macro-control, it is expected that domestic demand in the later period is expected to continue to grow. However, due to the oversupply of the market, the price of 20# seamless steel pipe is difficult to increase significantly, and will remain at a low level.