The inventory of stainless steel thick-walled tubes began to gradually decrease as a reservoir

In 2013, after the price of stainless steel thick-walled tubes went down for six consecutive months, steel prices began to rebound in July, driven by the increase in domestic iron concentrates, imported iron ore prices, and social replenishment stocks. The month continued to rise. In the same period, the rebound of thick-walled pipe prices also significantly restored the profitability of steel mills. The cumulative year-on-year growth rate of profits rose from 22.70% at the end of June 2013 to 69.40% at the end of August. The rise in steel pipe prices and production profit margins led to the circulation of steel products. The profit margin has also recovered.

When traders invariably abandon inventory, the role of stainless steel thick-walled pipe inventory as a reservoir began to gradually decrease, especially the adjustment of market prices slowly lost. In addition, due to the current high steel production capacity, far higher than the market demand, as long as the market price increases, the steel mill has a strong capacity release impulse, the release of this capacity will soon reflect the market price, so It is difficult for market prices to rise sharply now. Under this circumstance, the significance of steel traders to make inventory is greatly reduced, and the impact of inventory on steel prices is decreasing.

To achieve sustainable economic, social and environmental development, China's steel industry faces four challenges: lower carbon emissions, the search for excessive steel production capacity, medium-term raw material price fluctuations, and future supply of raw materials that may cause changes in production processes. In the future, we must maintain the development of the steel industry by continuously doing a good job of reducing excess capacity, reducing the cost of producing steel, stabilizing demand, and making full use of the scrap level.