Continued Rebound In Futures Drives A Good Trend Of Stainless Steel Sanitary Pipe Spot Transactions

Continued Rebound In Futures Drives A Good Trend Of Stainless Steel Sanitary Pipe Spot Transactions

As the overseas COVID-19 epidemic shows signs of mitigation, superimposed “OPEC +” is a positive boost.

The global stock market recovered this week, and internal disk futures rebounded at a low level, which led to a narrow range of spot prices for stainless steel sanitary pipes.

Food Grade Sanitary Tube and Fittings

Food Grade Sanitary Tube and Fittings

Futures rose sharply, stainless steel sanitary pipe and fittings spot shocks were strong

Only four days of quotations were made this week. On Tuesday, the market was boosted by the reduction of the excess deposit reserve ratio. Most of the stainless steel sanitary pipe quotations were raised, which was relatively stable in the middle of the week and strengthened again on Friday. Overall, the price of stainless steel sanitary pipes has been stronger this week, market sentiment has picked up, and steel mills have a strong willingness to push prices.

In terms of futures, the rebound continued to rise, and the continued rebound in futures drove the spot transaction sentiment and speculative psychology of stainless steel sanitary tubings, forming support for market prices.

Shagang Group (the biggest private steel enterprise in China, shagang below) stabilized prices in mid-April

Shagang announced the ex-factory price of building materials in mid-April on the 11th, which was the same as that in early April. On the one hand, after the price of stainless steel sanitary pipes continued to fall in the early stage and the profits of steel mills contracted, the willingness to sell prices increased. On the other hand, by increasing the amount of the supplement to make up for the loss of traders in the process of price inversion, it also helps to push steel mills to destock. With the decline in the raw material end, steel mills will continue to increase prices willingness.

In March, steel and steel production inventories fell, and the total inventory of stainless steel sanitary pipes was still high

According to data from China Steel Association, the daily output of key steel companies in March declined month-on-month, and is in the stage of inventory reduction, and the destocking cycle is still long.