304 stainless steel seamless pipes price are still rising

In late may, the market of 304 stainless steel seamless pipe was shaken, and the market was still in the "three highs" of high output, high price and high cost (traders' purchasing cost).In this situation, how do steel traders operate?Steel traders should not blindly follow the rise of the potential market risks under the "three highs" and maintain a stable and good market operation of stainless steel seamless pipe 304.

Since April, the price of 304 stainless seamless stainless steel tubes has increased considerably.All the way by the "area" initiative, the advance of new domestic infrastructure projects construction, and engineering machinery equipment update demand increased, the influence of such factors as the second half of engineering machinery market is expected to support 304 stainless steel seamless pipe market prices stabilised.

However, the domestic market of 304 stainless steel seamless pipe currently presents the operation characteristics of "three high".One is high production.Average daily crude steel production at key steel mills hit a record high in early may, according to the steel association.This is the largest of the three heights.Second, high prices.At present, the price of 304 stainless steel seamless pipe is high.Third, high costs.Steel mills continue to raise factory prices, making it increasingly expensive for traders to buy goods.

The phenomenon of "three highs" makes the potential risk of 304 stainless steel seamless pipe market increase, steel traders must strengthen the awareness of prevention.At present, the procurement cost and financing cost of steel traders are rising, while the factory price of steel mills is continuously rising, and there has been a "reverse" situation.According to the current ex-factory price of steel and 304 stainless steel seamless tube spot market sales price, although traders subsidies for steel mills, but still high price and high cost make traders operating difficulty bigger, profit more difficult.Faced with the potential risks brought by the three highs, steel traders should not be blindly optimistic and blindly follow the highs. Instead, they should adjust their business strategy and marketing mode timely according to the changes of the 304 stainless steel seamless pipe market.According to the actual needs of customers and their own financial situation, reasonably set up the inventory, to minimize the risk.If the price of stainless steel seamless pipe of 304 is artificially increased to stimulate the release of steel plant capacity, and the steel plant keeps raising the factory price, it will increase the purchasing cost of traders and further increase the risk.In this situation, once the price of 304 stainless steel seamless tube drops in shock, the steel traders are bound to suffer the most damage.

Steel traders should also note the impact of the "three highs" on downstream steel enterprises.For example, some steel enterprises suffer losses due to the sharp rise in the price of steel and other production materials, which affects the demand for 304 stainless seamless pipes.Some end users are short of funds and are in arrears with steel traders' payments, thus affecting the benefits of steel traders.Therefore, in the current market environment of 304 stainless steel seamless pipe, steel traders should also tighten the "strings" to prevent risks when conducting trade cooperation with downstream end users.According to zheheng steel knowabout, real estate, shipbuilding, machinery and so on steel and 304 stainless steel seamless tube industry facing the same capacity and inventory, adjust the structure of the problem, some of the downstream enterprise production and operation is not good, face the survival crisis.Real estate industry, for example, inventory task is arduous, the real estate industry in some areas of a bubble, for some real estate developers to tighten bank loans, the property market regulation policy has been issued.The real estate industry is 304 stainless steel seamless tube, demand for real estate enterprises supply of 304 stainless steel seamless pipe, steel trade and business is often the first delivery, settlement, after mat endowment huge amount, high risk funds.Steel trading business, therefore, should strengthen and optimize their business management, even determine the cooperation, signed a contract to supply, also want to follow the customer's operation, once found to have abnormal situation, respond in a timely manner.