This is expected to drive down inventory pressure on suppliers

In July, China’s stainless steel seamless pipe market fluctuated upward; in August, as the high temperature and rainy season gradually decreased, the demand for construction steel is expected to continue to be repaired.

The continuous recovery of the manufacturing industry drives the release of stainless steel seamless pipe demand, and the market supply and demand relationship will improve.

It is expected that in August, Chinese stainless steel pipes market will show a turbulent and strong operation trend.

Demand analysis of stainless steel seamless pipe industry

1. Export demand: stainless steel exports continue to decline and will remain low in the later period

The impact of weaker overseas demand is prominent for stainless steel pipe fittings supplier. In June, China’s stainless steel exports hit a new low since March 2012. The lack of price advantage is also an important reason for the decline in stainless steel exports. China’s stainless steel exports still lack price competitiveness.

At present, China’s stainless steel exports are affected by the slow recovery of external demand, trade protection from other countries, and lack of price advantages. Short-term export orders are still insufficient. It is expected that exports of stainless steel seamless pipes in July will remain low.

2. Domestic construction demand: the demand for construction steel is limited and will improve later

Since the second quarter, the decline of fixed investment indicators related to domestic construction steel demand has narrowed month by month, and the cumulative growth rate of real estate investment in June has first turned positive. In the second half of the year, under the influence of national policies, the demand for stainless steel seamless pipes will usher in a significant increase.

With the gradual reduction of the hot and rainy weather in August, construction projects will gradually resume construction intensity in the second half of the month, and the demand for construction steel will improve.

3. Domestic manufacturing demand: the recovery of manufacturing industry drives the release of demand for stainless steel seamless pipes

Since the second quarter, the manufacturing industry has continued to pick up. The value added of the industrial enterprises above designated size has shown a rebounding trend since it turned positive in April. At present, both the production and demand indicators of the manufacturing industry have maintained an upward trend, indicating that the manufacturing industry is fully recovering and rebounding, and the production operation cycle is smooth and the trend is accelerating, which will drive the further release of the demand for stainless steel seamless pipe.