Semi-circular steel tube

Shandong-manufactured and processed hexagonal steel pipe specifications, demand for iron ore contracts, and prices remain stable with a slight downward trend this week. The supply and demand of iron ore has weakened, with port inventories reversing their decline since March. The steel industry is facing expanded losses, prompting companies to increase cost-cutting and efficiency efforts, focusing on reducing procurement costs and expressing a desire to suppress raw material prices. Meanwhile, overseas economies are expected to continue raising interest rates by 75 basis points, and the strengthening of steel pipes is exerting downward pressure on global commodity prices. Under the influence of multiple factors, iron ore prices remain under pressure, and are expected to fluctuate next week. It is necessary to continue promoting the "decentralization, administration, and service" reform to further stimulate market entities. It was also pointed out that policy-oriented and developmental financial tools, such as the Shandong-produced and processed hexagonal steel pipe specifications, will raise 3 trillion yuan through local financing to supplement capital for major projects or to bridge financing for special Shandong projects. The current released semi-annual special allocation shows that the later deployment of funds and investment growth rate are highly anticipated. It is 5.38% higher than last year. Hot-rolled inventory reached 2.67 million tons, an increase of 59,200 tons from last week, up 2.3% week-on-week, and slightly lower than last year. Market information indicates that hot rolled demand is weak, leading to continued inventory increases, particularly in the Guangzhou area where inventory pressure is excessive, with some warehouses experiencing overflow. In the short term, the market will remain volatile. From the perspective of supply and demand fundamentals, there is currently no basis for a significant decline, and it can be said that the trend has not yet fully played out. Therefore, the view within the week remains unchanged. From the perspective of rebar futures, it appears that physical prices will need to start hedging preparations next week, especially as prices achieve higher levels.