The supply of seamless stainless steel tubes continues to increase, and the apparent demand starts up. Limited merchants are cautious in replenishment

Affected by the bankruptcies of the International Swiss Bank and the Silicon Valley Bank, international commodity prices fell across the board, the stock market and futures markets plummeted, and capital investment expectations fell, leading to a sharp decline in the domestic futures market. The operating sentiment in the spot market was depressed. In addition to the year-on-year or more than 15 million tons of crude steel output in the first quarter of 2023, the supply of stainless steel seamless tubes continued to rise, and the oversupply situation continued. What was the price trend of stainless steel seamless tubes in the later period?

Factors Affecting the Market of Stainless Steel Seamless Pipe

US Silicon Valley Banking Crisis Spreads to Europe

On Wednesday, European shares of Credit Suisse closed down more than 24%, the largest one-day decline on record, while American shares closed down 14.14%. The Swiss Central Bank and the Swiss Financial Market Supervisory Authority issued statements on market instability. The Swiss Central Bank said it would provide liquidity to Credit Suisse Group if needed.

Although the US CPI and PPI data meet expectations, and the Federal Reserve accelerates the slowdown, which is beneficial to international commodity prices, affected by the crude oil and international banking crises, the entire international fund is in danger. The global stock market and commodity prices are falling across the board, leading to a significant decline in the domestic futures market. The operation of the spot market is sluggish, the overall overall environment is poor, and the price trend of stainless steel seamless tubes is negative.

Sales of construction machinery such as road rollers and industrial vehicles decreased in February

According to the statistics of the China Construction Machinery Industry Association on major grader manufacturers, in February 2023, 437 types of graders were sold, a year-on-year decrease of 8.96%. In January-February, the cumulative sales of 962 land levelers decreased by 9.5% year-on-year.

At present, the trend of macroeconomic policies remains unchanged, and the country is vigorously developing infrastructure, real estate, and other projects. Given the long start cycle of major projects, the slow start of infrastructure projects after the Spring Festival holiday, the procurement of road rollers, industrial vehicles, and other construction machinery has decreased, and the demand for steel is limited, which is favorable for the price trend of stainless steel seamless pipes.

The price of new houses in 55 cities rose month on month

According to the National Bureau of Statistics, in February 2023, the number of cities with a year-on-year increase in the sales price of commercial housing in 70 large and medium-sized cities continued to increase, and the sales price of commercial housing in all tier 1 cities increased overall. The sales price of commercial housing in tier 1 cities increased year-on-year, while the year-on-year decline in tier 2 and tier 3 cities narrowed.

Under the guidance of a multi sector package of policies, housing demand has further released, residents’ enthusiasm for buying houses has rebounded, and the inflow of funds into the real estate market has increased, driving the resumption of work and production of real estate enterprises to increase, boosting economic recovery and development. At the same time, the demand for industries related to real estate has increased, driving consumption and benefiting the price trend of stainless steel seamless tubes.

Price Prediction of Stainless Steel Seamless Pipe

Currently, affected by the sharp decline in the prices of international crude oil and the entire bulk commodity market, the stock market and futures market have fallen by more than 3%. The operating sentiment in the spot market is depressed, and the market price has fallen across the board. Terminal procurement is cautious and wait-and-see. “The supply of seamless stainless steel tubes continues to increase, with limited apparent demand starting. Merchants are cautious in replenishing their inventory, and it is expected that the price of seamless stainless steel tubes will stabilize and decline slightly tomorrow.”.