Overall, the price of Tianda Seamless Steel Tubes will continue to be under pressure due to this factor.

Seamless Steel Pipe Industry: According to the latest statistics, seamless steel pipe prices experienced a cautious decline in early August due to market price fluctuations. Following the narrow range volatility of the London nickel price, prices remained stable with a wait-and-see attitude. At the end of July, the London nickel price surged due to seasonal short-term disruptions in Philippine nickel ore exports and accelerated destocking of nickel iron domestically, leading to a temporary shortage in domestic nickel supply. This resulted in continued price increases for both the London nickel and nickel prices, driven by low inventory levels and the potential for increased demand. However, the upward momentum of the London nickel was insufficient, and the surplus in nickel supply remained unchanged, causing prices to continue to decline. As a result, prices ended July with a stable outlook. The steel market experienced a significant decline, breaching the cost lines of steel companies. The economy faces downward pressure, and the softening of the steel market has become a常态化 trend. With steel prices falling again to a low point, the price fluctuations in the steel market can only be interpreted within the range of losses and minimal profits in the steel industry. Regardless of how the steel market price fluctuates slightly in the future, it will not change the serious market situation. Depressed data shows that the industry's weak situation is more severe than before, and downstream industry data is also poor, making further downward price adjustments in steel prices possible. Steel prices continue to weaken, and merchants are unable to make a profit. Currently, although steel prices are at a low level not seen in the past decade, few merchants have plans for large-scale storage. Since the beginning of the year, steel prices have been generally weak with no sustained upward trend, and the future trend of stainless steel wire prices is uncertain. For merchants, the monthly funding cost for each ton of steel is between 40 and 50 yuan, totaling 120 to 150 yuan per ton. If steel prices can increase by 150 to 200 yuan per ton next year, merchants can still make a profit. However, from the current market situation, the possibility of such an increase is extremely low, and the continuous pressure on seamless steel pipe prices is likely. Steel trading companies are facing severe capital shortages, and merchants have no money for storage. The contradiction of capital shortages will intensify, and banks have tightened loans to steel trading companies in recent years, leaving merchants with little capital for inventory storage. The recent interest rate cut by the central bank has had a positive impact on the capital shortage issue, reducing financing costs. However, for steel merchants, the challenges go beyond funding costs; the more critical issue is the source of funds. As an industry with excess capacity, banks will continue to tighten credit policies. Therefore, the capital shortage issue is unlikely to see significant improvement. Currently, the steel market is in a low season, and the upcoming year-end is the period for steel and agents to negotiate new contracts for the following year. With the continuous decrease in social inventory, the pressure on contract organizations will increase, and due to the recent deterioration in export conditions, under increased sales pressure, steel may increase the discount for steel merchants. In the fourth quarter of this year, large-scale increases are unlikely to occur, and the reservoir function of steel merchants will further weaken. The inventory and sales pressure on steel will further increase, and it is expected that the overall seamless steel pipe prices will continue to be under pressure due to these factors.

Liaocheng Steel Pipe