There Is Still Demand For Rush Work Before Winter For Sanitary Stainless Steel Pipes

There Is Still Demand For Rush Work Before Winter For Sanitary Stainless Steel Pipes

Since August this year, the equatorial Central and Eastern Pacific has entered the La Ni帽a state. According to China’s National Climate Center, the state of La Ni帽a will continue to be maintained in the fall, and it is expected to reach its peak in this winter, that is, a weak to moderate La Ni帽a event will occur this winter. Since 2000, there have been 5 La Ni帽a events. In terms of the status of the 5 La Ni帽a events, the average temperature in parts of eastern Inner Mongolia, Northeast China, and North China in winter is 1-2掳C lower than normal in the same period, and in some areas it is 2掳C lower. According to the data of previous years, the impact on China’s winter climate may be more obvious, which is likely to cause China’s winter climate to be colder, which is not conducive to construction in the north, especially the Xiongan area, and is bad for the demand for sanitary stainless steel tubings and sanitary stainless steel pipes.

polished stainless steel tubing

Sanitary stainless steel pipe market: strong reality vs weak expectation

[Today, Tangshan’s environmental protection control is strengthened again] Since 18:00 on October 23, 2020, the city has launched a Class II emergency response to heavy pollution weather. Increasing the proportion of sintering machine production limit for blast furnaces, converters, limes, pellets in the iron and steel industry; the coke oven load of Class B enterprises in the coking industry is reduced to less than 80% of the designed production load, and the coking time shall not be less than 28 hours based on the delayed coking time; The coke oven load of C-level enterprises is reduced to less than 65% of the design production load, and the coking time shall not be less than 36 hours based on the delayed coking time. This morning, the billet rose 10 yuan to 3440 yuan/ton, and the rolling mill is facing production suspension again, and the market expects a strong atmosphere.
[Steel pipes] Tangshan pipe prices have risen steadily, and raw materials have continued to rise slightly. The sanitary stainless steel pipe market has followed the rising sentiment, and merchants are actively shipping.

Significant recovery in demand for building materials

This week the demand for building materials has recovered significantly, especially in East China, which is close to the level after the Spring Festival, and the pressure on North Materials is relatively high due to weather factors. The apparent demand for threaded threads was 4,164,200 tons, a decrease of 271,200 tons from last week, but it was still at a high level during the year. More than 410 watch demand also indicated that it was in the peak season, but the market is not optimistic about the future. Looking at it now, the peak season time is limited. And after that, demand weakened from the previous month, leaving time for high inventories. In the case of high inventory and high supply, traders are cautious and focus on digesting their own inventory, thereby suppressing spot prices.

The supply of sanitary stainless steel pipes remains high

Today, the Bureau of Statistics released the latest production data for October. In mid-October, the average daily crude steel output of key steel enterprises increased by 0.14% month-on-month. On the one hand, it shows that the supply remains high, on the other hand, it also shows that the current terminal demand is not bad. Compared with the peak season demand, the pressure of high supply in the early period has eased, but it still maintains a relatively medium-to-high level. From the perspective of steel plant maintenance plans, steel companies have no obvious long-term shutdown maintenance plans in October. Sanitary stainless steel pipe market Also, the supply relief space has not yet seen much performance, and the pressure of high production under high inventory continues to exist.

Summary: Entering the end of October, the terminal demand of sanitary stainless steel pipe market is slowing down due to the interference of weather factors. This week, the decline of social warehouse factories and warehouses has slowed down. The market mentality is cautious. The price of sanitary stainless steel pipes continues to rise. The demand is still there, and the market volume has declined, but it is still at a relatively high level. Considering the settlement period at the end of next week, the market is expected to be volatile and apparent consumption is still relatively high.