The cost side pressure of stainless steel welded pipe enterprises is still high

The cost side pressure of stainless steel welded pipe enterprises is still high

The “March gold and April silver” is coming. Whether the scrap steel market can continue to rise is a matter of concern to the current market. At present, the black plate continues to improve in the near future. The expected demand recovery of the Hindi kinakalawang na asero na welded pipe market will drive the plate and spot market. Gayunpaman, at the critical moment when the market validation period is about to enter in March, we still need to have expectations for the future, and the scrap steel price is still supported.

February 2022 is coming to an end. As the month of centralized resumption of production of electric arc furnace enterprises after the year, the demand for scrap steel in the market has increased significantly, the operating rate of electric arc furnace enterprises has also increased, and the overhaul of long-process enterprises has also decreased. The market as a whole is developing well. The trend of scrap steel price also conforms to the prediction of the market before the festival. The profits of traders who have prepared goods before the year are also relatively objective.

In terms of price, the trend of scrap steel price in the first year of 2023 is roughly the same as that in 2021 and 2022. Although the price in 2023 is significantly lower than the center of gravity in the first year of 2022, it is also because the scrap steel market experienced a period of decline in the second half of 2022, making the center of gravity of scrap steel move down as a whole, but the current overall trend is also in line with the expected price rise trend before the year.

In terms of demand, in February, with the continuous opening of electric arc furnace enterprises and the normal production of long-process steel enterprises, and even some long-process enterprises taking the initiative to increase consumption and production, the operating rate of short-process enterprises has also increased. Halimbawa, the overall operating rate of an electric furnace enterprise in southwest China last year was maintained at 30% – 40%, but with the recent improvement of the threaded surface, the spot price of stainless steel welded pipes has increased, and the overall demand of the downstream market is expected to be good in the future, The market has accelerated, and the operating rate of stainless steel welded pipe enterprises has increased.

As for the profits of steel mills, with the rising price of stainless steel welded pipes, the profits of long-process steel enterprises have improved slightly, but the profits of short-process steel enterprises have narrowed due to the obvious support of scrap steel prices and the large increase. On the whole, the profits of the steel enterprises in the long and short process are still poor. Although the stainless steel welded pipe has risen, there is no obvious improvement in the profits. The pressure on the cost side of the stainless steel welded pipe enterprises is still high. The raw materials, especially the scrap steel, are subject to this. Once the price of the stainless steel welded pipe falls, the scrap steel will bear the brunt.

In the Hindi kinakalawang na asero na welded pipe market in March, for the present, everyone’s expectation is the improvement of the future terminal demand. With the continuous release of favorable policies for domestic real estate, including the relief of funds for real estate enterprises, the pressure on real estate has improved compared with last year, but in terms of demand, the substantive recovery of real estate may take some time in the future; At present, to expand domestic demand, infrastructure is the main force driving the demand for building materials and raw materials, which is prior to the recovery of other manufacturing industries. From the perspective of current actual demand, most of the demand is also driven by infrastructure projects. From the reaction of the current stainless steel welded pipe market, we also have a positive view on the future demand, so the recent market trend is strong. But March is also the critical time for the market to verify the expectation. If the demand meets the expectation, the black side will continue to improve; If the market verification deviates from the expectation, the black side will also be hit.

Overall, the overall environment of Hindi kinakalawang na asero na welded pipe this year is good because of last year’s situation. For the scrap industry, the tight supply of scrap steel will not be easily changed, while the real estate, infrastructure and manufacturing industries will also be better than last year, driving the market demand, thus driving the price of Hindi kinakalawang na asero na welded pipe, thus driving the scrap steel. Therefore, we still need to hope for the future, and the price of scrap steel is still supported.

Cost side pressure of stainless steel welded pipe

Understanding the dynamics of stainless steel welded pipe pricing is crucial for businesses and professionals dealing with construction, manufacturing, or industrial projects. The cost of these pipes is influenced by various factors that can create significant pressure on pricing. Here, we delve into the key cost-side pressures impacting stainless steel welded pipe rates.

The foundation of stainless steel welded pipe pricing lies in the cost of raw materials, primarily nickel, Chromium, and molybdenum. These elements are essential for producing stainless steel, and their market prices can fluctuate based on global demand, mining activities, and geopolitical events. A spike in raw material costs directly affects the pricing of the finished product, pushing the rates upward.

The production of stainless steel welded pipes is energy-intensive. Electricity and fuel costs play a significant role in the overall manufacturing expenses. Fluctuations in energy prices, driven by factors such as oil market trends or changes in energy policies, can lead to increased production costs. As a result, these changes often translate into higher prices for stainless steel products.

Labor is another crucial factor in determining the cost of stainless steel welded pipes. The industry relies on skilled workers for processes like welding, cutting, and inspection. Wage increases or changes in labor laws can impact production costs. Companies must balance fair compensation with maintaining competitive pricing to ensure profitability

The global nature of the steel industry means that transportation and logistics are vital components of the supply chain. Shipping costs, customs duties, and tariffs can add to the expenses of delivering raw materials and finished products. Any disruptions in transportation, such as port strikes or increased fuel costs, can lead to higher prices and delays in delivery.

tringent environmental regulations can impose additional costs on stainless steel manufacturers. Compliance with these regulations often requires investment in cleaner technologies and pollution control measures. While these efforts are essential for sustainable production, they can contribute to the overall cost of manufacturing, affecting the pricing of stainless steel welded pipes.

The demand for stainless steel welded pipes can significantly influence their pricing. During periods of high demand, such as infrastructure booms or industrial growth, prices may rise due to increased competition for available supply. Conversely, during economic downturns, reduced demand can lead to lower prices, albeit with potential impacts on profitability.

Understanding these cost-side pressures is essential for businesses seeking stainless steel quotes or managing budgets for projects involving stainless steel welded pipes. By staying informed about these factors, companies can better anticipate pricing trends and make strategic decisions in a dynamic market.