Affected By The Covid-19 Epidemic, The Situation Of Stainless Steel Flanges Is Not Optimistic

1. Global financial market turmoil, stainless steel flange futures plunged

After the Chinese New Year, in the category of commodities related to economic growth, the strongest asset is the stainless steel flange.

As the overseas epidemic became more serious, Chinese finished product exports were affected. The domestic production of stainless steel flanges continues to pick up sharply, and the pressure of destocking is still relatively large. The oversupply of finished materials is a foregone conclusion.

On the 27th, the Politburo meeting pointed out that it is necessary to speed up the issuance and use of local government special bonds, increase the fiscal deficit rate, and guide the loan market interest rate to fall, which will be beneficial to the restoration of confidence in the stainless steel flange market. However, Monday’s futures still weakened significantly.

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2. Capacity utilization continues to rise, while supply pressure is still large

According to statistics, the operating rate and capacity utilization rate of stainless steel flange production lines continue to rise.

The weekly output increased by 171,200 tons, and the factory warehouse and social warehouse decreased by more than 1.15 million tons, good news is, it was still much higher than the same period last year.

Affected by the decline in terminal manufacturing exports, the actual demand is weak, and the overall oversupply of stainless steel flanges is still serious.

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3. The trading volume of building materials rebounded gradually in March.

According to the statistics of the Ministry of Industry and Information Technology: As of March 28, the average start-up rate of industrial enterprises in the country is 98.6%, the average return rate of personnel is 89.9%, and the return rate of SMEs has reached 76%. About a percentage point, the pace of construction has accelerated significantly.

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4. This week’s stainless steel flange market forecast

With the effective prevention and control of the domestic epidemic situation, the conditions for the normal production and operation of stainless steel flange enterprises have been met.

Subsequent favorable factors such as financial support, accelerated progress of enterprises, and release of consumption will drive the economic rebound.

The weak economic data of GDP in February-February is not terrible. Whether the follow-up demand can be released is the focus of everyone’s attention.

We expect the price of stainless steel flanges to continue to decline slightly this week, and the decline will be concentrated between 20-80 yuan.