Cost support has loosened, and seamless pipes across the country are expected to run weak and stable today

【Price Review】

On October 20, the prices of seamless pipes in major cities across the country trended weaker and underwent adjustments. The national average price of 108*4.5mm seamless pipes was reported at 4,251 yuan/ton, down 4 yuan/ton from the previous trading day. The Linyi market price fell 30 yuan/ton, while the Liaocheng market price remained stable. The seamless pipe price index was 4,120.84, down 7.23 from the previous trading day.

【Raw Materials】

Pipe blank: On October 20, the ex-works price of hot-rolled pipe blank in Shandong decreased by 10. Φ50-130 steel mill direct delivery, tax included: Donghai 3,120, Gangtou Special Steel 3,260, Tiangang 3,150, Weigang 3,200. (yuan/ton)

Steel billet: On October 21, the Tangshan steel billet index was 2,965.0, the settlement price of ordinary billet in Qian’an, Tangshan was 2,940, the weekly average price was 2,947.14, the monthly average price was 2,972.33, and the traders’ spot price was around 3,000. (yuan/ton)

【Transaction Situation】

On October 20, the total transaction volume of sample enterprises of 124 seamless pipe traders nationwide was 15,510 tons, an increase of 0.4% day on day and 7.7% year on year. By region, apart from decreases in Southwest, Northeast, Central China, and Northwest regions, transaction volumes in the remaining regions increased to varying degrees, among which East China saw a relatively large increase of 4.2%.

【Market Situation】

Yesterday, black series futures prices fluctuated within a narrow range, and seamless pipe market prices declined slightly. On the supply side, support from raw material costs loosened somewhat, but ex-works prices of mainstream pipe mills remained temporarily stable, and pipe mills had a weak willingness to take the initiative to cut prices; on the demand side, the Linyi market price fell 30 yuan/ton while prices in other mainstream cities remained stable. Market transactions were mainly based on rigid demand, and some mainstream markets faced pressure for belated price declines; on the sentiment side, traders mostly maintained a cautious wait-and-see attitude toward the future market, and their willingness to concede profits to promote transactions increased somewhat. It is expected that today’s seamless pipe prices may run stable to weak.