Seamless Steel Pipe Market Expected to Continue Heating Up

Domestically produced seamless pipes supplied according to institutional performance are manufactured from ordinary carbon steel according to GB/T700-88 Class A steel (but the sulfur content must not exceed 0.050% and the phosphorus content must not exceed 0.045%), and their mechanical properties should meet the values specified in GB8162-87.

Domestically produced seamless pipes supplied according to hydrostatic testing must guarantee the hydrostatic test specified in the standard.

The physical performance testing of imported seamless pipes is carried out according to the relevant standards specified in the contract.

Pipe billet and pipe manufacturers have continuously and significantly increased the ex-factory prices of seamless pipes. The price of seamless pipes in Zhengzhou market has suddenly surged, breaking through 5000 yuan in a short period of time. Although Zhengzhou seamless pipes rose in March, the increase was stable, making traders hesitant about future prices. Looking at the steel market, billet prices reached a six-year high, and the prices of various finished products such as construction materials, plates, and profiles also reached a four-year high. At the same time, futures prices fluctuated upwards, and iron ore and coke prices rose sharply, prompting continuous price increases in the spot market. However, demand remained lukewarm, and de-capacity and environmental protection inspections continued, boosting market confidence. Due to tight resources, pipe billet prices gradually increased, with medium-sized hot-rolled pipe billets from Luli, Weigang, and Jiangxin increasing from 3800/3830 yuan to 4100/4230 yuan. Medium-sized hot-rolled seamless pipes produced by Linyi pipe manufacturers cumulatively increased by 700-750 yuan to 5200-5250 yuan, while the ex-factory prices of large-diameter seamless pipes produced by Henan Fengbao and Huifeng also rose to 5050 yuan. Due to reduced production capacity of environmentally compliant pipe manufacturers, inventory has dropped to a low level, thus driving up local seamless pipe prices. From the perspective of traders' operations this month, old inventory has basically been sold out, new goods are arriving continuously, and market prices are rising simultaneously. Due to the rapid increase, traders are cautious in their shipments, maintaining their inventory at the original level, and carefully replenishing and selling goods. This month saw a "cost-driven" price increase. According to a report from China Seamless Pipe Network: March marks the peak season for the steel market, and downstream demand in various regions will increase, while current pipe mill inventories are low. Facing the impending increase in demand, the "too many monks, too little porridge" situation may lead to further price increases in the Zhengzhou seamless pipe market.

Secondly, government environmental inspections will strictly order some small and medium-sized steel enterprises with substandard environmental indicators to suspend or reduce production, resulting in a decrease in steel production capacity and leading to price increases. Pipe mills in Linyi, Liaocheng, Yantai, and Weifang are still undergoing production suspensions and upgrades. Currently, cold-drawn pipe production in Linyi has been completely suspended.

Thirdly, Mr. Li Xinchuang, Vice President of the China Iron and Steel Association and President of the Metallurgical Planning Institute, explained the production restriction measures for the "2+26" cities during this year's heating season. Mr. Li stated: "The 50% production restriction during the heating season does not mean a 50% restriction for all enterprises, but rather a 50% restriction on the total steel production capacity of the city. Local governments can implement differentiated production restriction ratios based on the environmental protection levels of steel enterprises within their jurisdiction. Enterprises with high environmental protection levels will have fewer restrictions, or even no restrictions; enterprises with low environmental protection levels will have more restrictions, or even be shut down. This can achieve a pollutant reduction effect of more than 50% while maintaining an overall 50% production restriction." This statement indicates that steel production restrictions this winter will essentially be 100%. Winter production restrictions will further reduce upstream production, leading to further increases in seamless pipe prices.

Wuxi Hengxin Zhicheng International Trade Co., Ltd. has won the approval and praise of its customers with its high-quality products, diverse varieties, fast delivery, and strict requirements. Since its establishment, the company has always adhered to the business philosophy of "honest cooperation and common development." Under the guidance of this philosophy, our company has grown from a small company to a leader in the steel industry in just a few years. The company has long-term spot sales of various alloy pipes, 15CrMoG alloy pipes, 12Cr1MoVG alloy pipes, and Q345B alloy pipes produced by major steel mills such as Chengdu, Baotou Steel, Yegang, Lubao, Wuxi, and Tianjin Seamless Steel. Based on user experience and quality, the company is committed to providing excellent service, adhering to the business philosophy of integrity, trustworthiness, transparency, fairness, impartiality, and reasonableness in its dealings with the public.