After the 316L stainless steel pipes export volume in the Chinese market hit a low level in recent years in August, it rebounded slightly for two consecutive months, while the import volume of stainless steel material dropped significantly in September.

In October, the global demand for stainless steel continued to increase overall, the global TP316L stainless steel pipe market continued to rise, and the export quotations of stainless steel materials from various countries rebounded. The price advantage of China’s stainless steel exports gradually emerged, and the export volume rebounded slightly.

According to estimates, the average export price is still higher than the average import price, but the price difference has shrunk significantly. The main reason for the significant increase in stainless steel imports in the early stage was the inflow of low-priced TP316L stainless steel pipe resources from neighboring countries such as Southeast Asia, Japan and South Korea. India, the world’s second largest crude steel producer, became a net steel exporter to my country for the first time in several years. With the recovery of overseas demand and the shrinking of domestic and foreign price differences, the space for the influx of global stainless steel into the Chinese market has shrunk, and steel imports have dropped significantly.

The global economy continues to recover

Benefiting from the strong stimulus policies of various countries and the gradual control of the epidemic, the global economy has continued to recover. According to the China Federation of Logistics and Purchasing, the global manufacturing PMI rebounded by 1.6 percentage points to 54.5% in October, and remained above 50% for four consecutive months. The manufacturing PMIs in Asia, Europe, America and Africa all rebounded and maintained Above 50%, the global manufacturing industry continues its recovery trend, and the recovery speed has accelerated.

However, the European and American epidemics rebounded rapidly at the end of October. Major European countries have announced that they will strengthen prevention and control and adopt a new round of blockade measures, which may reduce the speed of economic recovery. The short-term impact on the 316L stainless steel pipes export cannot be ignored.

Global stainless steel pipe market supply and demand doubled

Global economic activities have gradually recovered, industrial production has maintained a recovery trend, TP316L stainless steel pipe consumption has continued to improve, the global stainless steel market has become active, and the production and sales of major enterprises have gradually recovered to normal levels.

The World Steel Association raised its forecast for global steel demand in October. In 2020, global steel demand will fall by 2.4% to 1.725 billion tons, which was previously expected to fall by 6.4%. The European Iron and Steel Association recently predicted that the apparent consumption of steel in the EU this year will fall by 14.6% year-on-year, which is an improvement from the 16.6% previously predicted. The Ministry of Economy, Trade and Industry of Japan predicts that Japan’s domestic stainless steel demand in the fourth quarter will increase by 5.4% month-on-month due to increased automobile production.

On the supply side, global crude steel production continued to rebound. In September, the world steel association’s statistics of 64 countries’ crude steel output was 156.4 million tons, an increase of 002 million tons from August. Among them, the output of crude steel outside of China was 63.8 million tons, an increase of 202.4 million tons from August.

The new export order index of China’s steel industry has risen to more than 50%, and the improvement in overseas demand has brought market space for China’s stainless steel exports.

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Posted by stainless steel pipe fittings supplier, KAYSUNS.