SunSirs: The Price of Seamless Tube Fluctuated Within a Narrow Range in January

　　According to the statistics of SunSirs, in January, the price of seamless tube was generally stable. At the beginning of the month, the price of 20#, 108*4.5 seamless tube was 5,802.5 RMB/ton, and it rose to 5,840 RMB/ton at the end of the month, up 0.65%, and up 14.23% year-on-year.

　　Analysis review

　　In terms of raw materials, the Linyi area issued an orange warning on air pollution at 8:00 am on the 7th this month, after the production suspension resumed on the 2nd, it faced another production shutdown or production limit. The Liaocheng area pipe factory has limited production by 50% since January 5. The production limit has led to a sharp rise in raw material tube billets, with a cumulative increase of 50-170 RMB/ton, and the pipe factory has also raised the price of seamless tube by 100-200 RMB/ton.

　　In terms of inventory, as of the end of the month, the inventory of seamless tube in major cities across the country was 743,900 tons, which was unchanged from the same period last year.

　　In terms of demand, the overall transaction in January was weak, the enthusiasm for purchasing before the holiday was not high, and the stocking volume was low. The main reason is that some companies shut down earlier, the number of shutdowns has increased, and demand has been sluggish.

　　Market outlook

　　To sum up, the supply of raw material tube blanks is tight, the downstream stocking inventory is not high, and the price of overseas seamless tubes is trending well. After the start of construction after the holiday, demand has recovered, and it is expected that the price of seamless tube will be mainly increased.