Rainy weather caused TP304 stainless steel inventory pressure to grow
A large amount of inventory has an inhibitory effect on the price of tp304 stainless steel seamless pipes but the terminal demand is slowly recovered.
After the Spring Festival in China 2019, there was a long rainy weather in the south, which delayed the start-up process of TP304 stainless steel seamless pipe terminal demand, which made the steel traders feel a fog.
Faced with a slight rebound in operating rates and a relatively cold turnover in the steel market, TP304 stainless steel seamless pipe market inventory is rapidly accumulating, and has now surpassed the high level after the Spring Festival in 2017, and moved closer to the high level after the Spring Festival in 2018. Seeing that more than half of June, many places will enter the start-up season, many steel traders are not too optimistic about the market outlook.
A person in charge of a steel trade company said that the most concern in the industry is the weather in the southern region. If the rainy weather continues, coupled with the bad weather in the north, if the demand for TP304 stainless steel seamless pipes will not be able to be pulled up in the short term, the pressure on steel trade enterprises will be greater and greater.
The relevant person in charge believes that this year's TP304 stainless steel seamless pipe demand release is later than last year. Coupled with a wide range of rainy weather, traders are more cautious.
Guangdong's steel trade enterprises are more cautious in terms of inventory accumulation, but the relevant responsible person believes that the demand for TP304 stainless steel seamless pipes in Guangdong infrastructure projects is relatively large, and it is not pessimistic for the later market demand.
Through communication with TP304 stainless steel seamless pipe industry, kaysuns also found that steel mills, traders and downstream demanders are paying more and more attention to the performance of the futures market. If futures rise, procurement will become significantly positive, and steel traders will quickly restore confidence.
For downstream, the demand started slowly, new goods arrived one after another, and TP304 stainless steel seamless pipe stock continued to increase substantially. After all, terminal demand is slowly recovering, and the market will maintain a neutral evaluation next week.