In June, steel companies faced a situation in which the price increase of TP316L stainless steel seamless pipes was much lower than the increase in costs.

It can be seen that the stainless steel seamless pipe profit of steel stainless steel pipe fittings supplier per ton of steel has deteriorated in June.

The pig iron cost index continued to rise in June, with the average value of the whole month increasing by 5.2% from the previous month.

According to the 30-day charge stock cycle of the steel mills, to study the charge cost in June, we need to first analyze the market conditions of iron ore and coke in May:

The iron ore market price in May showed an upward trend. In May, the coke market experienced three rounds of increase, with a cumulative increase of 150 yuan. The average monthly price rose significantly from the previous month. Overall, the average production cost of TP316L stainless steel seamless pipes transmitted to steel mills in June was significantly higher than that of the previous month due to the increase in iron ore and coke prices.

The gross profit of the seven major varieties in June was estimated to fluctuate and decline. However, due to the arrival of the off-season of building materials consumption, the procurement of downstream construction sites has gradually slowed down. The average profit of various types of products has been differentiated compared with the same period of last month, and the profit of steel billets and building materials has declined.

The profit of steel pipe suppliers will continue to decline in July

In July, the high temperature and rainy weather increased, and the demand for TP316L stainless steel seamless pipes will continue to weaken; the current high steel output and the inflection point of the rebound of the social library have suppressed the TP316L stainless steel seamless pipe market, and the market shows “Supply is up, demand is down”.

The pattern of crude steel in July remains high, and market supply pressure is increasing. It is expected that the domestic TP316L stainless steel seamless pipe market of China will weaken in July.