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Market Analysis of 20G High Pressure Boiler Tube
Edit:Shenyang Sidi Ou Trading Co., Ltd.   UpDate:2018-08-23

This week, the Zhengzhou stock market is weak and is expected to continue to fall next week. The main reasons are:

1. In the off-season, the demand release is poor, market transactions are weak, and delivery is difficult.

2. Although the Angang rebar production line has undergone major overhaul, the production of other large factories in the province is normal, and the supply pressure of 20G high-pressure boiler tubes is still high.

3. The steel mill lowered the ex-factory price, and the market attendance cost was insufficient. The ex-factory price of Angang No. 25 building materials was lowered by 50 yuan/ton, exempt from tax. Overall, although the Angang market has an upward trend after the overhaul of Anyang Iron and Steel, due to poor trading and insufficient cost support, it is difficult to maintain the market price. It is expected that the local market price will continue to weaken next week. In terms of varieties, the price of billets is relatively strong in the first ten days of this month, and the willingness of traders to raise prices is also strong. In recent years, some steel mills have adopted the practice of protecting blast furnaces and stop rolling lines in production. Some slab rolling enterprises have also stopped production, which directly led to an increase in the supply and demand of billets in the market and the rise in the price of downstream steel strips. . The configuration file continues. Low, the billet market is weaker and prices are falling sharply. Although the price of continuous casting billet has been at a low level, the price of 20G high-pressure boiler tube has not changed significantly. The loss of continuous casting billet enterprises is serious. With the increase of overhaul of steel mills, it is expected to ease the market sales pressure. At the same time, after the billet price fell to a low of 1800 yuan / ton line, some businessmen believe that the risk has been small, and began to gradually increase replenishment. It is estimated that billet prices will pick up slightly in July.

The main influencing factors are as follows:

1. The contradiction between supply and demand still exists. Although the steel mills in the province have carried out production and overhaul, the effect is obviously low. At present, the market inventories are still large, and the resources are newly added in the near future, but the characteristics of the off-season consumption are obvious. More obvious is that digestive difficulties, business sales pressure is greater.

2. There is no confidence to say; as the market continues to decline, the market has not changed, the pessimistic business mentality has intensified, more inertia has declined, and active selling has been the mainstay. The low position has further dragged down market prices, and if there is no obvious good news, then It is difficult to enhance confidence.

3. Lack of support for raw materials; 20G high-pressure boiler tube market supply increases, demand is weak, prices will remain low, iron ore production has returned to early shutdown of production mines, supply will also increase, and prices will continue to rise in the future will be difficult to maintain .
This week, Xi'an market fell, including Longgang wire rods and screws, which decreased to 80-100 due to the increase in market arrivals. The screw steel market is generally available and the price is adjusted in a narrow range. It is expected to remain weak next week. The main reason is that due to seasonal factors such as high temperature and rain, the construction progress is slow and the demand tracking is insufficient. In summary, the adjustment is expected to remain stable and weak in the coming week. Although both steel mills and households are striving to slow down the decline in steel prices, they have no choice but to follow low-cost resources. The mainstream prices continue to fall, and this week's cumulative decline is about 50 yuan / ton. The trade has not changed much, and large households can maintain a daily turnover of about 1,000 tons. Small and medium-sized households are basically at the level of 300-500 tons, and high-priced shipments are obviously blocked. From the current production schedule of steel mills, full load is another negative of the imbalance between supply and demand of most enterprises. In particular, the pressure on orders of steel mills is huge. Because traders do not have much inventory, they mainly rely on import and export, so stocks The pressure is relatively small. Considering comprehensively, it is expected that the price of 20G high pressure boiler tubes will continue to fall next week.

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