Steel pipe market in the first quarter of 2020-Boiler Tubes,Heat-Exchanger Tubes,Superheater Tubes,Supplier,Beite

Steel pipe market in the first quarter of 2020

Review and summary of the steel pipe market in the first quarter of 2020

In the first quarter of 2020, the overall trend of the pipe market is declining. There is no doubt that the impact of COVID-19 on the steel industry is immeasurable, but at the same time it is also our trainer to respond positively to emergencies. In the first quarter of 2020, the price of welded pipes fell by US $ 35 / ton; the price of seamless steel pipe fell by US $ 15 / ton.

From the perspective of inventory, in 2020, the inventory of welded pipes and seamless pipes has risen sharply, and prices have also run in inverse proportion to inventory.

There are three reasons: first, because of the Spring Festival holiday, the market was partially closed before the year, and the inventory digestion was slow; second, because the seamless connection between the Spring Festival holiday and the COVID-19 epidemic made our holidays gradually extended, and there were situations where people were restricted , So there is no downstream demand, few transactions, and stockpiles were accumulated years ago; third, because COVID-19 also affected the import and export aspects of China's steel industry, and in late March, the rapid explosion of foreign COVID-19 also led to China's foreign imports have been affected to a certain extent, and China's export products have also been turned into domestic sales, which has been further digested in the domestic market.

In the first quarter of 2020, China's stock of pipes has gradually increased, while prices and stocks appear in inverse proportion. At the end of March and early April, the inventory of the pipe market showed an inflection point, and market demand was gradually released. However, due to the turbulence in the market, traders' replenishment operations are still cautious, and they purchase more on demand. But overall, the emergence of inventory inflection points also gives the entire pipe market confidence in the future.

The first quarter has passed, and the second quarter has come. In the first quarter of 2020, the pipe market trend weakened. With the gradual resumption of business, the economy slowly returned to normal, infrastructure demand was released, and the downstream resumption of procurement plan gradually recovered, and the pressure on our pipe market has also been eased. As of April 29, 2020, the national pipe market has been oscillating and becoming stronger. The upstream billet and strip prices are trending well. The downstream demand is gradually released. The inventory has an inflection point. In addition, the domestic COVID-19 control has achieved significant results. Or it will operate under pressure. In the medium to long term, the pipe market after the recovery of demand will fluctuate upward.