The Output Of Stainless Steel Welded Pipes Has Increased, And The Market Supply In The Later Period Exceeds The Demand

China’s domestic stainless steel welded pipes market continued to rise in August.

In the first half of the month, due to the increasing support from the cost side and the clear willingness of steel mills, the bottom of the market prices continued to rise; In the second half of the month, as the stainless steel welded pipe market is still at the end of the traditional off-season demand, the downstream demand is insufficiently released, and the pressure on the supply side is also increasing.

Supply side: In August, the downstream demand was strong, and the stainless steel welded pipe market was in the off-season, but the transaction was not weak, which made the supply side show a strong momentum.

Data show that in August, the average operating rate of blast furnaces in 100 small and medium-sized stainless steel pipe fittings suppliers nationwide was 87.9%, which was basically the same as last month and was 5.9 percentage points higher than the same period last year.

Judging from the production of crude steel in key large and medium-sized iron and steel enterprises, in mid-August, the crude steel output of key large and medium-sized iron and steel enterprises increased.

Demand side: In the context of the COVID19 epidemic that has profoundly impacted the world economy, the central government has proposed a new development pattern in which domestic and international cycles are the mainstay and the domestic and international dual cycles promote each other.

At present, with the support of policies, the intensity of domestic infrastructure investment is increasing:
From January to July, the national investment in fixed assets in transportation was 1.8 trillion yuan, a year-on-year increase of 9.4%. Among them, the investment in highways and waterways was 1353.7 billion yuan, a year-on-year increase of 12.1%;
The national railway fixed asset investment was 392.986 billion yuan, a year-on-year increase of 1.6%.
During the same period, the power supply projects of major power generation companies across the country completed an investment of 213.9 billion yuan, a year-on-year increase of 51%;
The national power grid project completed an investment of 205.3 billion yuan, a year-on-year increase of 1.6%.

Under the stimulus of favorable policies and the continuous expansion of effective investment, the domestic market for stainless steel welded pipes will continue to increase steadily.

In September 2020, the prosperity of the stainless steel welded pipe industry continued to rise to the balance baseline. At present, the traditional peak season for demand is gradually approaching, and welded stainless steel pipe manufacturers have also substantially increased their ex-factory prices. However, due to the simultaneous increase in production capacity, the market may experience oversupply in the later period.