The mismatch between supply and demand led to a recovery in the pipe industry

In November, the sales index and the order index of steel pipe suppliers were 52.9 and 52.4, respectively, up by 5.4 and 4.9 percentage points from the previous month, indicating that the market purchase demand is active and the off-season is not weak, which is mainly reflected in the obvious recovery of direct supply orders of terminal purchase. The inventory index of steel enterprises in circulation was 45.0 in November, down 0.1 percentage point from the previous month.From a regional perspective, the inventory indexes in central and southern China, northwest China, east China and north China showed different degrees of decline, falling to 3.6, 1.5, 0.3 and 0.3 percentage points respectively from the previous month.

Inventories in the northeast and southwest rose by 5.2 and 4.0 percentage points, respectively, from the previous month. From the point of scale, middle-aged sample enterprise sales are more than 1 million tons; steel market circulation of resources is more smooth, the market of all kinds of steel circulation enterprises inventory all appear to drop significantly. From the perspective of absolute quantity, since the beginning of November, due to the unexpected outbreak of market purchasing demand, the steel social inventory of galvanized steel pipe has been in a sustained decline. According to Lange steel research center, market monitoring shows that in November, steel social inventory in 29 key cities across the country decreased by nearly 1.79 million tons from the previous month, down 20.5%.

According to the leading index, the purchasing intention index of the iron and steel circulation industry was 48.3 in November, up 2.8 percentage points from the previous month. Trend judgement index of square steel pipe is 47.4, up 4.1% last month, showed that sample companies to market outlook pessimistic expectations have changed, which is mainly due to the traditional off-season and the implementation of the environmental protection policy of restricting output effect also exceed market expectations, leading to a sample of the late purchase intend to cautious optimism.

At the beginning of this month, due to the influence of weather, the environmental limit of production of mild steel tube was irregularly accompanied by the steel market. The output of steel mills was suppressed to some extent.Subsequently, due to the appearance of the construction site rush, the market purchase demand unexpectedly broke out, at the same time, the north material bound in the port is obviously blocked, resulting in a serious mismatch between supply and demand in the southern market, the southern market was the first to rise, followed by the northern market, the steel city appeared rapid rise market.