Price trend
According to data from SunSirs, the price of seamless tubes had remained stable and adjusted slightly this week. As of the weekend, the price of seamless tubes for 20 # and 108 * 4.5 was quoted at 4610 RMB/ton, a decrease of 0.05% from the beginning of the week and a year-on-year decrease of 7.98%.
Analysis review
Upstream: The mainstream prices of steel mill billets had remained stable and had declined, with some ex factory prices decreasing by 30-50 RMB/ton on a weekly basis. The market price for 20# hot-rolled tube billets was quoted to be 4,160-4,270 RMB/ton.
Macro news support was gradually loosening, and futures steel prices were fluctuating downward. The seamless tube spot market had a strong atmosphere of cautious observation. As the year-end approached, although some merchants had the intention of winter storage, they were constrained by high costs and had not taken substantial actions, and the overall shipment of merchants was poor. The overall temperature in the country was low, and the operating rate of downstream construction sites was relatively low. Most of the construction sites in the north had already been suspended, and the downstream had a low acceptance of the seamless tube prices. Merchants were eager to destock and were forced to increase preferential measures to promote shipment operation. However, the overall trading atmosphere for seamless tubes had not shown substantial improvement.
Market outlook
Based on the fundamental situation, the market's wait-and-see sentiment was dominant, and it is expected that the domestic seamless tube prices will remain weak and stable next week.
