Seamless steel pipe price chart from January to early March 2023, Can the seamless pipe market continue to rise?
Since January 2023, the domestic seamless pipe market price has ended the decline since the second half of last year and has begun to rebound. Before the Spring Festival, the market price has risen by about 2%; The market's rise was blocked, and some market prices were lowered. Whether the market price can continue to rise in the first quarter has become the focus of the market.
The reasons for the rise in seamless pipe market prices in 2023 are as follows:
On the supply side: In 2022, the overall supply of seamless pipes will be high before and then low, and the overall supply of the market will be lower than that of previous years.
In terms of demand: In 2022, domestic market demand will show a slight downward trend, while export orders will show a clear upward trend.
In terms of mentality: After the Spring Festival, various domestic policies have been stimulated and boosted, and people in the industry generally have good expectations for the domestic economy, making both parties in the market transaction more optimistic about the seamless pipe market in the next year.
However, after the market price of seamless pipes rose, the follow-up of downstream demand was a bit slow. Market merchants generally reported that the new orders after the year were lower than expected, and there were many uncertain factors in the short-term rise of the seamless pipe market.
First of all: in mid-February, the price difference between seamless pipes and pipe blanks was relatively widened, and seamless pipe merchants resumed work and production, which will inevitably lead to an increase in the total market supply.
Secondly: the recovery of downstream demand is slow, new domestic municipal construction projects have not yet been implemented, and orders from seamless pipe manufacturers are lower than expected.
So, facing the situation of both supply and demand at the beginning of 2023, market practitioners are more cautious. Now it seems that the market price of seamless pipes will continue to rise in the short term and may slow down.
