The impact of the recent rebound in the price of high-pressure boiler tubes and the continuous rise of the futures market

The recent rebound in the price of high-pressure boiler tubes and the impact of the continuous rise in the futures market have boosted market confidence, and prices in the spot market have rebounded comprehensively. After a long period of silence, the local building materials market has finally ushered in a rebound. As prices in the local market rise, many wait-and-see end customers begin to gradually purchase, and the trading volume of merchants gradually increases. Most merchants in the local market expect to be able to raise prices again before the festival, and the atmosphere of price increases is becoming stronger. Overall, it is expected that the price of Anshan construction steel will continue to rise in the short term. In the market, recently, the prices of upstream raw steel billets and strip steel have risen, but most manufacturers are not very optimistic. Due to limited procurement volume, it is difficult to drive the continuous rise in steel prices. Today, the price of welded pipe in Hefei market is still temporarily stable. Recently, Tianjin is again facing the impact of environmental inspections. Driven by the expected decrease in supply, the price of galvanized pipes in both Tianjin and Tangshan has increased. From the market perspective, the current environmental inspection has not caused significant impact, and the transaction activity of H-beam steel is still not high; The lack of substantial terminal demand has led to a sluggish performance of its impact on the market, coupled with the imminent May Day holiday and the slowdown in downstream projects, making it difficult for the steel market to make a significant breakthrough in prices. In terms of inventory, the current market resource supply pressure is not significant for the time being, and the balance between production and sales continues. Currently, the inventory of local merchants is mainly around 2500 tons, and the strategy of “follow in, follow out” remains unchanged. Considering that upstream cost support is gradually strengthening, but the market is cautious about this wave of upward momentum, it is expected that the high-pressure boiler tube market may be cautious and wait-and-see for the time being.
According to traders’ feedback, in recent times, there are still fewer downstream inquiry customers, and the cold demand makes the shipment of merchants still appear light. With the recent sales, the inventory in the hands of merchants has decreased, with mainstream specification resources being quite scarce. Under lower inventory, price adjustments have little significance. At the end of the month, most businesses have basically completed their orders, so the problem of tight funds should be addressed. In the peripheral market, prices have been weak and stable recently, which has also strengthened the mentality of local merchants to maintain stable prices. In addition, as the May Day holiday is approaching, the holiday atmosphere in the market is relatively strong, and downstream procurement is not active. In the face of this situation, businesses also have no intention of adjusting prices. In view of this, it is expected that the local cold rolling market prices may be dominated by weak consolidation in the short term. Yesterday, the settlement price of Beijing Hegang Steel Plant was launched, and the market price slightly increased, resulting in an increase in the trading volume of merchants. According to previous experience in raising prices, merchants are currently operating more cautiously, adjusting prices at any time based on demand; Shanghai’s building materials market has also experienced a slight increase in prices, but the price increase and spot transactions still do not correspond. There are still concerns that high level transactions will not move smoothly. Traders are still not optimistic about the future market trend. While the leading cities continue to strengthen, combining recent positive factors in the northwest region, coupled with long-term steel mill prices not being adjusted and the market not moving, traders are unable to bear the rising mood, Therefore, in the past two days, the price of Jiuquan Iron and Steel Co., Ltd. has started to move upward, and the transaction situation has still not improved. In short, the price of domestic building materials has not increased, and due to the impact of futures prices rising and falling back, businesses continue to maintain a shipping oriented business strategy. Therefore, the author expects that the price of high-pressure boiler tubes may be subject to a narrow adjustment in the future.

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