Precision steel tube supply and demand situation shows marginal improvement

On the 15th, the mainstream steel mills' billet ex-factory prices were temporarily stable. Yesterday, XinTian Steel's billet ex-factory price increased by 20 yuan, and LuLi hot-rolled billet increased by 50 yuan. On the 11th, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued sixteen measures to support the stable and healthy development of the real estate market. Yesterday, futures opened higher, and spot prices also showed a trend of rising in line with the market. However, under the current severe situation and the influence of the seasonal low season for precision steel tubes, the spot market prices are mostly experiencing slight increases. Billet prices also slightly rose, but market transactions were generally slow. It is expected that billet prices will remain stable with slight upward trends in the near future.

This morning, major pipe manufacturers are maintaining a wait-and-see stance. While upstream pipe billet prices have slightly increased, there is significant resistance to rising prices for seamless pipes, with a continued downward trend expected. Additionally, environmental protection measures have caused disruptions in vehicle transportation, leading to increased freight costs and a shortage of available vehicles. Meanwhile, regional feedback indicates poor downstream demand, with substantial inventory pressure on the supply side, prompting price cuts to facilitate transactions. Market traders are bearish on future expectations, with a weak willingness for "winter storage." Most are focusing on single negotiations to secure transactions, and it is expected that precision steel pipe prices will remain stable in the near term.