Although profit margins for precision seamless steel tube manufacturers have been compressed recently, there is a strong willingness among traders to hold prices. However, weak demand is the main reason that current market prices are struggling to sustain. This week, southern regions have experienced frequent cloudy and rainy weather, and overall construction site start rates in northern regions have also decreased compared to last month. It will be challenging to support the market prices for precision seamless steel tubes in the later period. The recent trend in the futures market has been unfavorable, with the previous rebound failing to hold at higher levels, and the downward pressure is expected to increase further. The market sentiment for precision seamless steel tubes has been affected, with a strong bearish outlook, especially in southern regions where many traders refer to the futures market. With futures turning negative, traders are predominantly focused on reducing inventory.
The precision seamless steel tube market may remain stable with a slight downward trend in the near future. There's a possibility of a slight increase in the northern market in the next couple of days, mainly due to the high settlement prices of leading northern manufacturers, with some traders suffering significant losses, which may not make it easy for them to significantly lower prices later. In the southern region, with no overall favorable conditions and overall demand remaining low, the market price of precision seamless steel tubes is likely to continue its downward trend.