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What are the reasons for the rise in the price of stainless steel pipes
- 2021-04-12-

The rise in the price of stainless steel pipes drives up the prices of raw materials such as iron ore, which in turn has a certain supporting effect on the price of TP316L stainless steel seamless pipes.

Some analysts pointed out that the significant increase in the price of stainless steel pipes is mainly due to the expected impact of relevant policies. Since the beginning of this year, relevant departments have repeatedly proposed to stabilize the capacity reduction effect, resolutely eradicate "floor steel", and prevent a resurgence. In addition, the "2+26" urban air pollution prevention and control task introduced in the first half of this year has made shopping malls have higher expectations for the market outlook, driving up the price of 304 stainless steel pipes.

Recently, the stock prices of black series futures markets and stainless steel pipe companies have undergone "changes", and the phenomenon of pushing up the price of stainless steel pipe spot markets is very intriguing. At that time, the sharp increase in futures prices was not caused by the need to pull the market or the supply reduction of the market, but some organizations over-interpreted relevant policies, and even reached the extreme conclusion that the price of stainless steel pipes would "rising". This kind of market situation judgment has expanded the impact of environmental protection and other related policies on market supply, and it is an appalling hype.

In fact, a similar situation has already appeared in early 2017. As my country wants to completely abolish the "land strip steel", there has been a wave of market speculation in the market to push up the spot and futures prices of TP316L stainless steel pipes and the price of imported iron ore. Although the price of stainless steel pipes was once raised by speculation, the price of stainless steel pipes quickly fell from a high point due to the lack of support from market fundamentals. In a panic, speculators rushed to flee, and there were ups and downs in the shopping mall.

Looking ahead to the price trend of stainless steel pipes, the key is to see the supply-demand contact of the mall. As the domestic demand for stainless steel pipes will remain stable and the release of stainless steel pipe production capacity will remain at a relatively high level, it is estimated that the price of stainless steel pipes will not continue to rise sharply in the future.

From the perspective of needs, the stable situation will continue. Since the beginning of this year, the supply-side structural reforms have been intensified, the domestic economy has continued to operate steadily and steadily, and the supply-demand connection of shopping malls has been continuously improved. The stainless steel pipe industry in the later period is expected to continue to grow steadily, and the demand for stainless steel pipes will be basically stable.

From the perspective of supply, the superior production capacity is indeed guaranteed. Since the beginning of this year, my country has achieved remarkable results in advancing overcapacity reduction and comprehensively eradicating "floor steel". Advantageous production capacity has been released in compliance with regulations, and the supply and demand situation of stainless steel pipe shopping malls has improved.

From the perspective of the supply and demand situation in the later period, the environmental protection production restriction measures in the heating season will definitely affect the supply. However, with the faster release of advantageous production capacity, there will be no large gaps in the later period of the market, and the price of stainless steel pipes should be difficult to rise sharply. Shake the running situation.