Chinese seamless pipe market bearish
2023-04-28 08:26:18 [Print]
BEIJING (Asian Metal) 28 Apr 23 - Most domestic seamless pipe participants show little confidence in the market prospect at the moment, and prices go down continuously. At present, the prevailing prices of seamless pipe 20# Ф377*10mm GB8163 hover at RMB4,900/t (USD708/t) in Liaocheng, and those of 20# Ф219*6mm GB8163 stand at RMB5,600/t (USD809/t) and RMB5,250/t (USD758/t) respectively in Guangzhou and Tianjin, down by RMB50/t (USD7/t) from early this week. Insiders foresee further price decline in the coming several days seeing the sluggish demand from downstream industries.
"End users remain cautious about purchasing discouraged by the downward price trend. We did not close any deals so far this week and mainly produce previous orders now, with the production arranging to the middle of May," disclosed a producer in Liaocheng, Shandong. Meanwhile, he disclosed that the demand from downstream industries remains weak, dampening the purchasing activities of end users to a large extent. Quoting RMB4,950/t (USD715/t) for seamless pipe 20# Ф377*10mm GB8163, he could accept RMB4,900/t (USD708/t) for orders. Taking the soft demand and the pessimistic atmosphere in the market into consideration, the producer believes prices of seamless pipe would go down further after the Labor Day holiday (April 29-May 3).
Based on an annual production capacity of 1 million tons, the producer recorded the output of about 185,000t in the first quarter of 2023 and 906,000t or so in 2022. The output in April would achieve 65,000t, similar to March. It holds about 30,000t in stock at the moment.
"Though most projects start operation, end users remain inactive in purchasing dragged by the pessimistic atmosphere in the market. Besides, the continuous price declines weaken their purchasing activities to some extent. To promote sales, we plan to move down prices by RMB50/t (USD7/t) again in the coming one or two days after decreasing prices by RMB50/t (USD7/t) early this week," disclosed a trader in Guangzhou. Offering RMB5,600/t (USD809/t) for 20# Ф219*6mm GB8163 from Hengyang Steel, he just sold 30t on Thursday, while could sell 50t a day early this month. According to him, peers provide kinds of discounts to promote sales discouraged by the slow market. Facing sales pressures, both large mills and small mills cut EXW prices in succession. He predicts a further price decline of seamless pipe in the forthcoming several days.
The trader would sell 2,000t of seamless pipe in April, identical to March. With the regular monthly sales volume of 3,000t, he recorded the sales volume of 8,500t or so till now this year, holding about 2,000t in inventory at present.
"Traditionally, end users would enlarge purchasing volumes for the preparation of the consumption during the Labor Day holiday, but they show little intention in purchasing this week discouraged by the downward price trend. We just sold 90t of seamless pipe 20# Ф219*6mm GB8163 at RMB5,250/t (USD758/t) on Thursday, while could sell 400t a day in early March," complained a trader in Tianjin. Quoting RMB5,300/t (USD766/t) for 20# Ф219*6mm GB8163, he could provide a discount of RMB50/t (USD7/t) for orders above 50t. Meanwhile, the trader pointed out that the continuous price decreases of raw materials and major steel producers dampen end users' purchasing activities to some degree. He worries prices of seamless pipe would edge down again in the coming several days upon the dim market.
Holding around 13,000t of stocks, the trader would sell 9,000t in April, down from 10,000t in March. He recorded the sales volume of around 36,000t so far this year.
"End users remain cautious about purchasing discouraged by the downward price trend. We did not close any deals so far this week and mainly produce previous orders now, with the production arranging to the middle of May," disclosed a producer in Liaocheng, Shandong. Meanwhile, he disclosed that the demand from downstream industries remains weak, dampening the purchasing activities of end users to a large extent. Quoting RMB4,950/t (USD715/t) for seamless pipe 20# Ф377*10mm GB8163, he could accept RMB4,900/t (USD708/t) for orders. Taking the soft demand and the pessimistic atmosphere in the market into consideration, the producer believes prices of seamless pipe would go down further after the Labor Day holiday (April 29-May 3).
Based on an annual production capacity of 1 million tons, the producer recorded the output of about 185,000t in the first quarter of 2023 and 906,000t or so in 2022. The output in April would achieve 65,000t, similar to March. It holds about 30,000t in stock at the moment.
"Though most projects start operation, end users remain inactive in purchasing dragged by the pessimistic atmosphere in the market. Besides, the continuous price declines weaken their purchasing activities to some extent. To promote sales, we plan to move down prices by RMB50/t (USD7/t) again in the coming one or two days after decreasing prices by RMB50/t (USD7/t) early this week," disclosed a trader in Guangzhou. Offering RMB5,600/t (USD809/t) for 20# Ф219*6mm GB8163 from Hengyang Steel, he just sold 30t on Thursday, while could sell 50t a day early this month. According to him, peers provide kinds of discounts to promote sales discouraged by the slow market. Facing sales pressures, both large mills and small mills cut EXW prices in succession. He predicts a further price decline of seamless pipe in the forthcoming several days.
The trader would sell 2,000t of seamless pipe in April, identical to March. With the regular monthly sales volume of 3,000t, he recorded the sales volume of 8,500t or so till now this year, holding about 2,000t in inventory at present.
"Traditionally, end users would enlarge purchasing volumes for the preparation of the consumption during the Labor Day holiday, but they show little intention in purchasing this week discouraged by the downward price trend. We just sold 90t of seamless pipe 20# Ф219*6mm GB8163 at RMB5,250/t (USD758/t) on Thursday, while could sell 400t a day in early March," complained a trader in Tianjin. Quoting RMB5,300/t (USD766/t) for 20# Ф219*6mm GB8163, he could provide a discount of RMB50/t (USD7/t) for orders above 50t. Meanwhile, the trader pointed out that the continuous price decreases of raw materials and major steel producers dampen end users' purchasing activities to some degree. He worries prices of seamless pipe would edge down again in the coming several days upon the dim market.
Holding around 13,000t of stocks, the trader would sell 9,000t in April, down from 10,000t in March. He recorded the sales volume of around 36,000t so far this year.
