The more information about 2020 steel pipe market

Trade between China and the United States is easing.
The first phase of China-US trade consultation in 2019 has achieved great results, and the agreement is to be implemented. At present, both China and the US are implementing necessary procedures such as legal review, translation and proofreading, which has set the tone for the overall China-US trade environment in 2020. Although fickle trump, the United States and China still faces greater uncertainty, but given until next face impeachment trump and a new phase of the election, the U.S. economy is down at the same time, even if, in accordance with the previous history of impeachment of steel pipe suppliers is likely to change.

From the point of supply and demand of hong kong-listed itself, the finale of the reform of the supply side, the late market will gradually shift to market its own supply and demand side, since the recent coil of new production line is more, at the same time, due to its strong prices, long products prices such as round steel pipe are weakening, may occur late steel hot tendency rolled plate, attention should be paid to this aspect of the trend, stacking limit production environmental protection, market at different stages will present different change. Then there is the futures market volatile. The capital market continuously hype stories will also become the norm, the above will lead to present a different direction in the different periods in 2020, volatility is difficult to avoid, unilateral market chance is very small, the amplitude or in 200-400 yuan. In the short term, the central bank cut the reserve requirement ratio across the board to release more than 800 billion yuan of liquidity. Perhaps the expectation of the reserve requirement reduction of China hollow section has always been there, so it did not stir up too much waves in the market, but there is a feeling that the policy is all good after the landing. And the new good has not come, from the demand side of support is weakening, the market’s general winter storage intention has not been fulfilled, relying on the weakening of the terminal demand.

At the same time, after the New Year’s day, the market have accelerated signs, especially the thread is more obvious, also from the side reflects the market demand force of the support strength of mild steel tube is limited. At present, there is not much time left for the market for winter storage. During this period before the Spring Festival, the demand for winter storage can be fully triggered. Otherwise, after the completion of the 01 contract, the market will face greater risks.