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Square pipes or price stabilization

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Square pipes or price stabilization

Release date:2015-03-30 00:00 Source: Views:

At this stage, although the square tube in the enterprises internal inventory continues to rise, but because of the low price of square pipes, continue to cut, while the demand is a long-term positive, but in general,because the power of square pipe prices pull up is still lacking, the author thinks that the late square pipes orprice stabilization.

Square tube internal high inventory of enterprises

From 2014 to early March and yield than a late increase or decrease respectively: thick square tube 1660600 tons, 143600 tons of production by 7.96%. The ten key statistics of square pipe iron enterprise square pipesinventory 16662200 tons, 408900 tons more than a year, an increase of 2.52%. We can find from the data inearly March, thick square tube production has declined, but the square pipe factory internal inventory has increased, I believe there are two reasons, one is the square tube factory orders is not good, and the downstream square tube trade at this stage are on-demand procurement, due to at this stage, the low price ofsquare pipes with stable operation, square tube trade psychological stockpile is poor, generally maintain low inventory state. The second point is affected by hot rolled futures market, there will be a lot of players entered,trading, it is required to have enough inventory, which is one of the reasons inventory of square pipe factoryinternal inventory increased. So, from the inventory, increase its inventory may exacerbate the relationship between supply and demand, produce new low price square tube.

Demand for long-term positive

On the weekend, "national new urbanization plan (2014-2020)" officially released, to the road of urbanizationindicates the direction. I think this will be the domestic city square pipe demand will bring long-term positive.Although progress, greater demand at this stage but not later, new urbanization will derive large-scale housing demand and large-scale infrastructure construction, urbanization will further consolidate the housing just to bebased, inject new vitality into the real estate market, at the same time it brings opportunities for the real estate industry. For example, urban transformation efforts to further increase, real estate, infrastructure constructionwill be strengthened, with real estate as an example, the square pipe market main downstream demand,demand the other moment of the tube is will increase, it also provided the impetus for the square pipe market,each moment the pipe market also has a certain role in boosting, which laid the foundation for the later square pipes downstream market demand the release of.

The raw materials of weak stability

The raw materials market is still the old fluctuations, but the overall stabilization of the operation, for example,stable operation of domestic iron ore market, Shanxi, Liaoning local iron ore fell, domestic ore price stability;the outer market price changes little; Port imported ore spot prices stabilize. 62% Platts iron ore index 110.25,flat; the MB index was 109.58, down 0.08. Square billet market stable and small fluctuations in Shanxi,Liaoning and other places, green rose slightly. Although the raw material of the weak stable operationweakened the support each moment the pipe price, but the author thinks, the price of the raw material is slowlyto stable, have much impact on the support price of square pipes not later.

From now on, go back to the past, square tube, superior to the rest of the state is exhausted, just see evidence of people's distress everywhere. Although the market has now entered the "four establishments" of the season, but from the current market overall trend, from the beginning in 2014, square price has been in decline, although the current upward trend, but prices did not appear obvious rise, at the same time,manufacturers and businesses are facing sluggish shipments and shrinking sales, inventory increasedifficulties; and the shortage of funds, and the terminal needs to contain the release of the lead pipe MarketSquare in many areas are still hovering in the weak, gloom, but at this stage the price at the bottom of the square tube manufacturers continue to cut trade Co., the author thinks that the late square pipes price stabilization operation probability large.

Related tags:Steelprocessing

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