By the end of 2020, the demand for stainless-steel weld tubes grows lower, but the stainless steel weld tube stock and production start to increase steadily. Now, the supply and demand in Chinese market have been changed. And the price for stainless-steel weld tubes slightly goes up. The stainless steel future has go beyond ￥100 CNY today. As for the stainless-steel weld tubes off-shelf, its price remains high.

The price rise of futures is affected by two major factors, one is 01 contract delivery date leading to price fluctuations of stainless-steel welded tubes. Another one is that American President Joe Biden unveiled a $1.9 trillion Pandemic Rescue Plan to develop America economy, which stimulates the stainless-steel welded tube market.

However, how long will the futures prices remain is yet to be seen. Due to the recent impact of the weather, Covid-19 and the approach of the Chinese New Year, the demand for stainless-steel welded tubes has been declining repeatedly. In north parts, many factories have been shut down, and some workers in China have gone back to their hometown in advance at different timeline.

According to recent data, it shows that the shipment of off-shelf stainless-steel weld tubes is also falling. Though the demand for stainless steel welded pipe declined, the production went up. Thus, the stainless steel weld tube stock appeared a significant rebound.

Currently, the supply and demand of stainless-steel tubes have changed. In the past, the price of stainless-steel tubes had gradually come down and entered the adjustment period. Some of the stainless steel pipe and fittings suppliers start to stock the products in this winter. However, this “convention” may be broken this year. Current price will discourage them.

Current futures trend has not yet been getting out of the stock shock, and trend market conditions are not established. After the delivery of 01 contract, stainless-steel welded tube future will eventually back to reality.