The price advantage of seamless steel pipe export goods continues to stand out.

Today, domestic seamless steel tube prices continue to show weakness, but the downward momentum has narrowed. Amidst Fed Chair Yellen's strong talk of rate hikes, rebar futures and hot rolled steel futures saw a significant surge, closing with a bullish cross. The risk preference sentiment in the seamless steel tube market has gradually been released, and the later suppression on the futures market may weaken. Although prices of various steel products in the spot market continue to approach lower levels, the downward momentum has waned. Currently, whether it's the lackluster economic growth or the hot and rainy July lull, there is a lack of momentum to boost the market. The ultra-low prices and the overall situation after the market's corrective adjustment have reduced the probability of further price declines, and the overall market may enter a phase of box-type fluctuations. For the current market, we are unlikely to see a significant rebound after an oversold market, as there is a lack of capital support, and the steel market's reservoir function has been greatly weakened,压制ing the price fluctuation space; on the other hand, the deepening of economic transformation and the obvious decline in current economic growth momentum have led to a significant drop in steel demand. In comparison, crude steel production continues to rise, exacerbating the supply-demand imbalance situation and dragging down the steel market. Moreover, the market sentiment lost after the oversold situation also needs time to recover. Therefore, the downward space for steel prices in the later period is limited, but the upward surge also lacks momentum, and the overall seamless steel tube market will mainly focus on bottom-end fluctuations. The continuous decline in the domestic steel market has further widened the price gap between domestic and international steel prices, enhancing the competitive edge in exports. As of the time of this report, the capital prices for steel products in the US have basically remained unchanged from the beginning of the month. In the Korean market, the prices of various steel products from China have stabilized and are trending slightly upward. In the Japanese market, the prices of various exported steel products have seen a significant decline of about 6.7% from the beginning of the month. In Southeast Asia, the prices of imported steel products have seen a significant decline of about 2%. Meanwhile, the prices of seamless steel tube products in our country have dropped by about 7-8% from the beginning of the month, and export offer prices have also fallen sharply. As we enter the middle of the month, despite the temporary lifting of the Greek exit alert, the strong dollar has returned again, and the domestic steel market, which showed a bottom-up surge driven by the futures market, has not lasted long, and the downward adjustment has reappeared. The hot and rainy July lull and the weak demand in the steel market itself have become the main factors restricting the upward movement of the spot market. At the same time, the obvious decline in ore prices has also become a factor supporting the weakness in the prices of finished products, and the support for the seamless steel tube market has weakened. Therefore, the chaotic domestic steel market has further enhanced the competitive edge in exports. Although the outflow of capital has decreased, the trend of hot money flowing back to the US has not changed. The continuous depreciation of the RMB is inevitable, which will further exacerbate the injury to the overall economy. However, for export goods, it will continue to enhance its international price competitive advantage. Therefore, whether it's the re-establishment of the recent low point in domestic steel prices and the overall lackluster economic growth momentum, or the further enhancement of the export exchange rate advantage, the price advantage of exported seamless steel tube products continues to stand out.

Liaocheng Steel Pipe