Raw material prices fell sharply; seamless tube prices are expected to be generally weak today

[Price Review]

Seamless Tubes: On August 14, prices of 1084.5mm seamless tubes in the Linyi market and Liaocheng market fell. The seamless tube price index was 4421.34, a decrease of 35.48% from the previous period.

[Raw Materials]

Tube Billets: On August 14, Shandong hot-rolled tube billet plants reduced prices by 50-60 yuan/ton. The tax-included ex-factory prices for Φ50-130 steel plants are as follows: Donghai Steel, 3040 yuan/ton; Gangtou Special Steel, 3270 yuan/ton; Tianjin Steel, 3060 yuan/ton.

Steel Billets: On August 14, after adjusting prices, the tax-included ex-factory price of general square billets in Qian’an, Tangshan, was reduced by 70 yuan/ton to 2900 yuan/ton.

[Market Situation]

Yesterday, seamless tube prices across the country were weak, with prices falling in various cities to varying degrees. The national average price of 1084.5mm seamless tubes was reported at 4544 yuan/ton, a decrease of 35 yuan/ton from the previous trading day. In terms of raw materials, Shandong tube billet prices fell by 60-80 yuan/ton, and Jiangsu tube billet prices fell by 30 yuan/ton. Some mainstream tube mills in the market reduced prices by 30-50 yuan/ton. In the market, the black futures market continued to decline, pessimism spread, and seamless tube prices accelerated downward. Although tube mills have slightly reduced production, significant inventory reductions have not occurred. Traders also maintain low inventory operations, downstream demand remains unchanged, market trading sentiment has further weakened, and actual transactions are mostly for low-priced resources. Under the influence of weak demand during the off-season and continuously weakening futures, it is expected that seamless tube prices in various regions across the country will continue to adjust weakly today.

[Industry News]

◎ This week, the average tax-included cost of steel billets for mainstream sample steel mills in Tangshan was 3283 yuan/ton, a decrease of 48 yuan/ton from the previous week. Compared with the ex-factory price of general square billets on August 14, which was 2900 yuan/ton, steel mills incurred an average loss of 383 yuan/ton.

◎ Ling Ji, Vice Minister of the Ministry of Commerce, presided over a special round table meeting to advance key foreign investment projects. Ling Ji stated that the Ministry of Commerce will promptly resolve difficulties encountered in project approval, land use, environmental impact assessment, energy consumption, financing, and other aspects, promote early signing of projects under discussion, early commencement of signed projects, and early completion of projects under construction, providing strong support for attracting and utilizing foreign capital with greater intensity.

◎ The US Consumer Price Index (CPI) rose 2.9% year-on-year in July, marking the fourth consecutive month of decline and the first time it has returned to the ‘2-level’ since March 2021. Market estimates were for a 3% increase, with the previous value also showing a 3% increase.

◎ On August 13, the Mexican Ministry of Economic Affairs issued an announcement, making a definitive final ruling on the anti-dumping investigation of steel screws originating from China, and deciding to impose anti-dumping taxes ranging from 8.02% to 91.22% on the involved products.