Precautions for the use of alloy seamless steel pipes
1. Understand the environments, temperature, pressure, and other physical parameters where seamless steel tubes are to be used, and ensure the products meet specific requirements. 2. Choose large enterprises and brand manufacturers for guaranteed quality of seamless steel tubes and better after-sales service. 3. Check for the product quality certificate issued by the seamless steel tube manufacturer and the certificate number under production license management. 4. Inspect the surface quality and markings of the seamless steel tube. The tube should be rolled with identification markings, standards, and diameter parameters. 5. Pay attention to any cracks, scabs, or other defects on the surface of the seamless steel tube, and use instruments for measurement and testing if necessary.
The average price of 35CrMo alloy tubes in 23 major markets across China is 6,872 yuan/ton, up by 2 yuan/ton from the previous trading day; the average price of 42CrMo alloy tubes in 22 major markets is 6,865 yuan/ton, down by 5 yuan/ton from the previous trading day. Steel mills' guidance prices are stable for now, and dealers' procurement costs show no significant fluctuations. As the National People's Congress and the Chinese People's Political Consultative Conference approach, overall, traders remain relatively optimistic. It is expected that the short-term price of alloy tubes will mainly remain stable with some individual increases.
Industry Hot News of Alloy Pipe
The Luoyuan Iron and Steel Industry Chain Project holds a集中 signing ceremony with a total investment of 35.4 billion yuan. The signing ceremony in Luoyuan County featured 21 projects with a total investment of 35.4 billion yuan. The projects involve the expansion and technical transformation of iron and steel enterprises, deep processing of steel products, and the application of metallurgical building materials in the secondary industry, as well as steel storage and trading, logistics transportation, and industrial tourism in the tertiary industry. Currently, the port-based industrial system for the iron and steel industry, with Baogang Desheng and Luoyuan MinGuang as key players, is taking shape. Jinxishi Iron and Steel is actively using off-exchange options to manage risks.
Jinxi Steel is one of China's major private steel mills. Hebei Jinxi International Trade Co., Ltd. is a wholly-owned subsidiary of Jinxi Steel, responsible for securing raw material procurement for Jinxi Steel and engaging in commodity derivatives hedging transactions. Jinxi International has completed 2 over-the-counter coke option trades, totaling 10,000 tons. Due to the high inventory of coke at the time, the company was concerned about price declines and the devaluation of inventory, so it participated in this project, utilizing a bear market spread option strategy to achieve inventory hedging with minimal premium paid.
Another 2 million tons steel mill goes bankrupt! Assets to be auctioned on March 17th. Tangshan Yutian Jianbang Industrial Co., Ltd. will hold a public auction on Alibaba's Taobao auction platform for bankruptcy liquidation from 10 AM on March 17, 2021, to 10 AM on March 18, 2021. The company was previously burdened with 1 billion yuan in debt, labeled as a defaulter, and underwent bankruptcy liquidation. It currently has a production capacity of 2 million tons, which has been replaced and disposed of in terms of steel production capacity.
Three consecutive quarters of high consumption are the fundamental reason for the price rise in the black industry chain. The domestic steel consumption decreased by 12% last quarter, but from the beginning of the quarter, it surged by 15%, with the growth rate in the third quarter rising to 20%, and it is expected to maintain a growth rate of over 15% in the fourth quarter. The core of strong consumption remains the global "flood of money" post-epidemic, fueling expectations of a robust economic recovery. Not only is the domestic construction investment sector experiencing a strong recovery, but manufacturing as a whole strengthened in the second half of 2020, creating a dual-engine driving effect. Overseas consumption began to rebound rapidly in the fourth quarter of last year, further boosting global steel consumption.
The three main drivers of steel consumption are advancing in unison.
Microscopic manifestations of high consumption in the steel industry: the domestic real estate sector's unexpected recovery, the strong maintenance of infrastructure investment, sustained export growth, and the robust recovery of the manufacturing sector post-overseas economic recovery. The three main drivers of steel consumption are advancing simultaneously. The continuous high-speed growth of construction machinery for six consecutive months fully illustrates the high vitality of China's construction activities. Excavator sales growth remains above 50%, and real estate sales above 10%. At the same time, some economic indicators also reflect the vitality of China's economy, such as industrial electricity consumption still growing at over 8%, the electricity consumption of the machinery manufacturing industry still growing at over 15%, automotive production and sales continuing to grow at over 10%, and household appliances maintaining a high growth rate of 15%. Looking overseas, whether it's the severe pandemic in Europe and the US or the relatively mild situation in Asia, the PMI index has reached new highs. Therefore, we believe that the global steel consumption outlook will continue to rise during the economic recovery process. Additionally, since the fourth quarter of last year, there has been a nationwide shortage of transportation capacity, with daily coal consumption growing at a high rate, containers being in short supply, and the CCFI index skyrocketing. All of these indicate that global economic activity is accelerating its recovery.
