The accumulative period of steel pipe market

After the holiday, the domestic steel market prices is generally to rise.Looking from the market, the domestic steel market is facing two flourishing supply and demand, market mentality is a cautious situation.The supply side, steel pipe suppliers mainly supply steel output of 2.0057 million tons, a record high since the statistics, the home of steel site investigation of the blast furnace capacity recovery for 6 weeks, rise to 90.6% at the end of April, hit a record high since investigation, predictably, crude steel production will continue to rise in April, and may be close to or more than last year in September of 2.695 million tons of the history of extreme value, and the current domestic steel mills profit at a higher level, still have large output power, the recent domestic market will face a larger supply pressure.

Downstream demand, the recent industry is in the peak season of consumption, the real estate investment growth is to further improve, infrastructure repair board will gradually increase, engineering machinery although growth has dropped, still continues to grow rapidly, the domestic steel market inventories of mild steel tube continued rapidly decline, also reflects the current demand for better overall and form a strong support for steel pipe market. Mentality, the recent business is still based on delivery, operation is more cautious.Overall, the domestic steel market is expected to rise.

This week also is the accumulation period that steel market enters contradiction of supply and demand.During this period, the supply of resources of rectangular hollow section will continue to be stable at a high level and the intensity of social demand release generally enters a period of gradual weakening, with regional demand weakening or emerging. Although the tangshan area in May blast furnace, converter has a high proportion of environmental protection production limit plan, the actual production limit results still need to wait.If the production limit plan is strictly implemented, it will have little impact on the market supply and demand. However, the bullish futures market will continue to drive the rise of spot prices.According to the investigation, tangshan most steel enterprises in the near future have no concentrated production limit signs. In addition, the main products of steel enterprises in tangshan area are billet, strip and coil, etc., and the output of building materials of structural steel pipe is relatively small. Therefore, the key to determine the supply and demand of building materials market at the present stage is still the degree of demand release.Therefore, it is expected that the steel stock will slow down or stabilize next week, and the inventory of building materials in some regions may turn from falling to rising.