Weak Market Demand Expected to Lead to Stable but Softening Trend in National Welded Pipe Market Prices Today

【Market Hotspots】

Macroeconomic News

On June 2, the U.S. Trade Representative’s office (USTR) announced a proposal to impose a 25% tariff on goods imported from Brazil, excluding those subject to Section 232 national security tariffs. On the same day, the European Parliament’s International Trade Committee voted to approve the EU-U.S. trade agreement.

Industry Hotspots

On June 2, iron ore transactions at major domestic ports reached 675,000 tons, a decrease of 11.1% month-on-month. Construction steel transactions among 237 mainstream trading companies totaled 88,700 tons, a decrease of 25.8% month-on-month.

Steel Pipe Perspectives

Survey statistics: On June 2, the total transaction volume of 178 welded pipe trading companies nationwide was 14,177 tons, including 3,583 tons of welded pipes and 10,594 tons of galvanized pipes, representing a 6.12% decrease from the previous trading day. By region: Welded pipe and galvanized pipe transaction volumes increased in all regions except North China, East China, and Central China. Nationwide, the overall transaction volume of welded pipes and galvanized pipes decreased slightly.

【Market Review】

Yesterday, domestic welded pipe market prices showed a stable but softening trend, with the national average price declining slightly. Entering the traditional off-season, market demand has significantly decreased, and trader sentiment remains pessimistic. However, current inventory costs for traders remain high, leading to cautious price reductions. The market continues to consolidate, and short-term price movements are likely to follow fundamental logic.

【Market Forecast】

As the traditional off-season begins, market demand has noticeably decreased, trader sentiment is pessimistic, and inventory levels remain low. Steel mills still have some profit margins, with molten iron production maintaining around 2.4 million tons. Raw material demand persists, but profit transmission downstream is challenging. Finished steel demand is weak, and there is an expectation of production cuts later. In summary, welded pipe prices in most markets across the country are expected to remain stable or show a softening trend today.