Accelerated de-stocking and strong cost-side support drive the operating sentiment of 2205 stainless steel seamless pipe merchants

The National Bureau of Statistics released the CPI data for February, which increased slightly overall. Under the guidance of macroeconomic policies, domestic consumption gradually started. The accelerated speed of stock removal, coupled with strong support at the cost side, has driven the operating sentiment of market merchants. What is the price trend of 2205 stainless steel seamless tube in the later stage?

1. National Bureau of Statistics: CPI rose by 1.0% year-on-year in February and decreased by 0.5% month-on-month

With the national focus on the recovery of economic development, a number of macro-favorable policies have been gradually implemented, the production of industrial enterprises has resumed development, and the market demand has improved. In addition, after the epidemic, the number of residents has increased, and the enthusiasm for market investment has increased, driving the increase of domestic consumption power, increasing the demand for steel, and improving the price trend of 2205 stainless steel seamless pipe.

2. Higher coal cost support

On March 8, the Emergency Management Department of Shanxi Province issued the 2023 Work Safety Supervision and Inspection Plan. According to the actual supervision work, 50 coal mines were identified as the key mines under the supervision and inspection of the Provincial Emergency Department this year, and implemented by the relevant coal mine safety department of the Provincial Emergency Department.

Under the Fourteenth Five-Year Plan, the country maintained the development of low-carbon green steel and strengthened the safety production of enterprises. The coal supply declined, and the iron ore bottleneck problem could not be solved, leading to the strengthening of cost-side support. Under the condition of low inventory, steel enterprises had to accept high-price procurement for a large number of production orders in the traditional 2205 stainless steel seamless pipe demand season. In order to maintain profits, the ex-factory price of steel enterprises rose, Support the spot market price of 2205 stainless steel seamless pipe to rise.

3. The operating hours of excavators were 76.4 hours, with a year-on-year increase of more than 60%

According to the data, in February 2023, the operating hours of Komatsu excavator in China were 76.4 hours, up 61.4% year on year, ending the 11-month year-on-year decline and turning positive for the first time in nearly a year.

In the traditional consumption season in March, under the favorable macro policy, the market investment confidence increased, the capital for major projects such as infrastructure and real estate was gradually in place, and the operating rate increased. In addition, the inventory of 2205 stainless steel seamless pipe was not large, and downstream users were basically purchasing on demand. The demand for 2205 stainless steel seamless pipe was also gradually increasing, which was good for the steel price trend. Today, the spot price of 2205 stainless steel seamless pipe fell first and then rose.

2205 stainless steel seamless pipe price forecast

With the warming of the weather, the number of outdoor construction projects has increased, and the terminal demand has gradually started. After the epidemic, under the guidance of the spirit of the 20th National Congress of the Communist Party of China, the effects of various national policies have continued to emerge. The Ministry of Finance and the Central Bank of China’s financial policies have launched, the liquidity of market funds has been guaranteed, the residents’ consumption has increased, the expectation of fixed investment has increased, and the demand for more steel has increased. The 2205 stainless steel seamless pipe market has staged a rebound, At the same time, iron ore continued to rise. Although warned by the National Development and Reform Commission and other departments, it only delayed the rise. The overall cost side remained strong, and the ex-factory price of steel enterprises remained high. It is expected that the price of 2205 stainless steel seamless pipe will be stable and strong tomorrow.