TP316L stainless steel pipe market supply and demand contradiction is not big

Although it has entered the traditional off-season of TP316L stainless steel pipe, the daily average output of crude steel has been hitting a record high. According to monitoring, the average daily output of crude steel in the country reached a record high in June. This is the highest level of history for three consecutive months since April and May, and will continue to be high in July. In the case of record high output, the price of TP316L stainless steel pipe has remained high.

Why is this happening? Although the output is high, due to environmental protection, demand, inventory, etc., the contradiction between supply and demand of TP316L stainless steel pipe market is not large, so the price remains high.

Recently, with the release of a series of environmentally-friendly production restrictions, it will affect the production of TP316L stainless steel pipes in the second half of the year. In particular, from July 20th, Tangshan City will start a 43-day emission reduction and limit production, which will inhibit the production of key steel production areas such as Tangshan and Wu'an in the second half of the year. -20% rose to 25-35% in the third quarter. Under the circumstance of stricter environmental protection policy, the market of TP316L stainless steel pipe is still firm.

On the demand side, the growth rate of fixed asset investment continued to decline in the first half of the year. The growth rate of infrastructure facilities, real estate development, industrial enterprises above designated size and TP316L stainless steel pipe demand indicators declined, but still showed a significant increase. The demand for TP316L stainless steel pipe industry is smoothly released. In the second half of the year, the large increase in ship orders has moderately driven the release of demand for steel for later ships.

In addition, in the second half of the year, with the completion of the project clean-up, the compliance project will also accelerate the progress of the project, and the infrastructure investment is expected to remain stable. Combined with the construction of the shed and related construction projects, the downstream demand of TP316L stainless steel pipe is expected to continue to maintain a stable release. . In the case of increasing demand, the price of TP316L stainless steel pipe will be stimulated.

Although steel companies were actively stimulated by high profitability, they did not form a large inventory backlog. After reaching the high point of the year on March 9th, it quickly fell for 14 weeks. After two weeks in June, it rebounded slightly. In July, the inventory of TP316L stainless steel pipe continued to decline.

Therefore, whether it is from the social inventory of TP316L stainless steel pipe or steel enterprise inventory, the overall inventory pressure is not large, which has played a supporting role in the price of TP316L stainless steel pipe.

Analysts said that although the daily average output of crude steel has reached record highs, there is no backlog in inventory. The contradiction between supply and demand of TP316L stainless steel pipe market is not too big. The environmental protection and production limit will increase the market's expectations for production restrictions, effectively enhance confidence, and prices will still perform well.