Learn the reasons why the price of stainless steel seamless pipes cannot come down from 3 points

Recently, the stainless steel seamless pipes market has reached a deadlock, rising and falling! But the deadlock is always broken, so where is the point of breaking this deadlock? Let’s analyze a little bit.

1. Supply: China’s domestic crude steel output in July was nearly 100 million tons, and the supply of stainless steel seamless pipes remained high.

China’s crude steel production in July was 93.36 million tons, a year-on-year increase of 9.1%. Moreover, judging from the current maintenance plans announced by various steel mills, there are even fewer steel mills willing to conduct maintenance in August than in July. Therefore, on the supply side, there will be an oversupply situation in the short term.

2. Demand: real estate policy.

At the Politburo meeting on July 31, the policy side again emphasized the purpose of “prohibiting raising housing prices.”

However, the latest statistics from the Bureau of Statistics show that from January to July, the national real estate development investment increased by 3.4% year-on-year, and the growth rate was 1.5 percentage points higher than that from January to June; the area under construction of real estate development enterprises increased by 3.0% year-on-year, and the growth rate increased by 0.4 percentage points. The area of ​​newly started houses decreased by 4.5%, and the rate of decline narrowed by 3.1 percentage points; the area of ​​land purchased by real estate development enterprises decreased by 1.0% year-on-year, and the rate of decline increased by 0.1 percentage point; the area of ​​commercial housing sales fell by 5.8% year-on-year, and the rate of decline narrowed by 2.6 percentage points; real estate development Funds in place for enterprises increased by 0.8% year-on-year, and fell by 1.9% from January to June.

3. High iron ore prices and strong cost support.

The price of iron ore has risen across the board this week, and the bargaining space has slightly expanded, but many miners are very expensive and do not accept low offers.