Can The Demand For Sanitary Seamless Pipes Rise To The Next Level From August

Can the price of sanitary seamless pipe continue to rise in the later stage?

Nearly halfway through August, the off-season demand for traditional seasonal sanitary seamless pipe has entered a countdown, and the peak demand season is coming. Under the influence of the rush period after the epidemic, the price of sanitary seamless pipes in July this year showed a trend of “not low in the off-season”. With the arrival of the peak demand season, can the demand for sanitary seamless pipes rise to the next level, and can prices continue to rise in the future?

polished stainless steel tubing

Since the end of May, southern China has entered the rainy season. The continuous rains have caused many provinces and cities such as Anhui, Zhejiang, Jiangxi, Hubei, and Hunan to experience unprecedented floods in many years. Under the influence of heavy rains, traffic was blocked, construction of open-air buildings was severely disrupted, and some projects were forced to suspend construction, resulting in a significant drop in the demand for sanitary seamless pipes. However, this phenomenon has now been alleviated, and the rainy weather in the south has gradually weakened, driving the demand for sanitary seamless pipes to continue to rise.

The recent improvement in demand is also reflected in the social inventory of sanitary seamless pipes. It is worth noting that this is also the first time that social inventories have fallen after six consecutive weeks of growth. It can be seen that the growth rate of the social inventory of sanitary seamless pipes this year has slowed down compared with the same period last year, which indirectly reflects that this year’s demand is better than last year.

In addition, production has repeatedly set new highs, and slowed down in early August, with a slight fall. With the decline in output, it has played a certain role in alleviating the relationship between supply and demand in the sanitary seamless pipe market.

Recently, the price of “iron ore”, which has been pushed to the forefront, has continuously hit new highs. The rising prices of steel-making raw materials have provided strong support to the price of sanitary seamless pipes.

For the later trend of the sanitary tubings market, in August, after entering the peak demand season, the demand for construction steel will gradually improve, and the supply-demand relationship will be improved.