Weak Trading in Low Demand Market

Macro tip: in early May, key statistics showed that iron and steel enterprises produced 24.1779 million tons of crude steel, 20.613 million tons of pig iron and 22.922 million tons of steel.  This ten days average daily crude steel 2.417,800 tons, a month-on-month increase of 0.75%, 17.84% year-on-year growth;  Pig iron was 2,061,400 tons, up 2.06 percent month-on-month and 11.50 percent year-on-year;  Steel products reached 2,292,200 tons, down 7.10% month-on-month and up 19.81% year-on-year.

Market review: this week the pipe market is mixed, the overall transaction performance is general.  Straight pipe mainstream market prices last week down 40-160, up 10-120, straight pipe overall trading lukewarm, price shock range narrow, downstream traders wait and see mostly, manufacturers flexible operation is the main.  The price of Tangshan mainstream, excluding tax, is quoted at 4920-4980 yuan/ton. The manufacturer’s shipment performance is general. Due to the influence of the plum rain season, the terminal demand is limited due to the construction in some areas, the demand is reduced, and raw materials are still at a high level.  Seamless tube market prices this week in the steady increase of 50-250, the cost of the firm rise, manufacturers more than go with the market mentality, however, after the rise of the transaction is not smooth, late cautious operation.