By Then, 316L Stainless Steel Pipe Fittings Supplier Will Face Pressure From Rising Demand.
- The first stage from January to March: COVID-19 epidemic situation and the Spring Festival, TP316L stainless steel pipe spot fell directly from 200 yuan, and then prices have been falling.
- The second stage from April to June: the demand rose, the demand for stainless steel pipes exceeded expectations, the resource circulation speed increased, and the price began to bottom out after the Qingming Festival. As of June 19, the spot price difference was less than one hundred yuan compared with the same period last year.
Influencing factors in the second half of the year
The impact of the epidemic on iron ore: The key suppliers of iron ore are mainly Brazil and India. The epidemic is difficult to end in the short term, which leads to strong uncertainty in shipments. The TP316L stainless steel pipe market is expected to continue to supply concerns, even if there are some It's getting better, but it's also a disturbing factor.
Cost control of steel mills: The price of coke continues to rise, and the high cost of molten iron in steel mills is a long-term state. The production costs of steel mills are relatively high. In the short term, the spot price for TP316L stainless steel pipes will not be cheaper.
Demand behavior: The demand supplement of the domestic downstream industry is still continuing. Recently, the demand for some TP316L stainless steel pipe downstream projects has also performed better. Last week, apparent consumption even increased again, and terminal demand improved.
Marketing trend prediction
After the Dragon Boat Festival, the price of TP316L stainless steel tube surface is under the background of small basis difference, the futures upside is suppressed, and the spot price spread will continue to be corrected. After the holiday, it will face downward pressure on production growth, inventory and demand at the inflection point. Therefore, the price of TP316L stainless steel pipe will usher in a wave of declines, within a hundred yuan.
The macro environment has improved in the second half of the year. Although the country has guided the market in general, there are many uncertainties affecting the stainless steel pipe market this year. The production costs of steel mills are high and the prices of products are high.
In the second half of the year, TP316L stainless steel pipes will face the challenges of high supply pressure and large demand variables, and it is difficult for the market to form a unilateral trend breakthrough.