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Alloy steel pipe is bound to need to be backed by stable economic growth.

author:Supeb(Shandong)Industry and Trade Co.,Ltd glance over: Publication time:2022/4/17 16:34:00

Since the beginning of this year, except for a short rebound in April and May, the steel market has been on the "high-altitude slide" almost all the way down. The alloy steel pipe market is welcoming the off-season, the economic recovery is also slow, and the cost support is far from enough, so we dare not speak out of turn. However, from the subtle changes, the author believes that the steel price will usher in a decent rebound this summer, but whether it can be successfully grasped is the key. After entering June, the domestic steel market's destocking has obviously slowed down. The inventory statistics of Zhou Du show that the destocking range has dropped from the previous 500,000-700,000 tons/week to 200,000-300,000 tons/week, with a drop of more than 50%. However, even so, the decline of steel prices has greatly improved, and most of the market prices are weak and stable. Some varieties, such as hot coils, have obviously enhanced their resilience, and the market's willingness to kill the price has already disappeared. Moreover, the price adjustment of steel mills is mainly stable, which does not support the downward trend. The current narrow range of shocks can only be said to be a helpless "groan"-weak rise and reluctance to fall. The market may take this opportunity to realize the bottom consolidation of this round of prices.

Against the background that the demand of downstream steel market dropped sharply and the cost continued to fall in June, the steel price stabilized obviously, indicating that the general direction is changing to a powerful side. These changes are mostly concentrated on the changes of policies, steady growth projects, economy and other aspects. From the perspective of the general environment, efforts are made to promote anti-corruption, and the scale is rare. Under this big action, alloy steel pipes need to be backed by the steady economic growth. It has become a fact that the economic growth rate in the second quarter is lower than the annual target of 7.5%, so how to achieve the annual target of 7.5% will be crucial in the next two quarters. Investment as the main body must be increased, otherwise it will be difficult to achieve. As far as the steel market is concerned, gaining momentum is under way.

Adhere to "going out" for overseas mergers. The low price of iron ore in the international market has greatly constrained China's resource strategy of "going out", and some overseas "equity mines" are in a difficult situation. Even so, we must persist in "going out" and actively seek opportunities to merge and reorganize overseas mines, so as to realize the diversification of iron ore supply channels. We must see that the iron ore market in the international market has fallen sharply now, and the world mining giants have to produce at full capacity, but dare not sacrifice the killer copper of "reducing production and insuring price", which lies in China's global iron ore resource layout. Without this strategic action, the world's mining giants are bound to have no scruples, and the price of alloy steel pipes in China has long gone up instead of down. Therefore, the temporary dilemma of "equity mine" is actually to exchange local interests for global interests. Relevant parties should give appropriate compensation and improve our strategic layout of iron ore resources.


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