Environmental protection restrictions on production and production shutdown have caused considerable shortage of honing pipe resources

- Nov 18, 2020-

The domestic market for honing pipes fluctuated steadily and adjusted. For domestic mines, the market is still operating steadily. At present, the price of finished products is slightly weaker than the previous period. Although the market is not good and steel companies are pressing prices more aggressively, in terms of imported mines, port spot prices fluctuate, and forward spot prices drop slightly. It is understood that the recent correction of iron ore prices is that on the one hand the continued weakness of steel prices has led to the shrinking of profits of steel mills, and the continued price reduction of high-grade ore; on the other hand, the continuous decline in coke prices has led to steel mills’ demand for high-grade ore powder The heat is also declining. In order to avoid cost pressure, steel mills have also begun to seek low-grade ore with higher cost performance. Taking the above factors into consideration, it is expected that the domestic iron ore market will continue to fluctuate in the future.

In view of this, it is expected that the local mid-board price may continue to operate steadily in the short term. According to feedback from merchants, there is almost no daily transaction of seamless pipes. Occasionally, the purchase of other varieties of steel will be followed by seamless pipe sales, which is not optimistic for traders in the market, so there is no action for winter storage. At present, the price adjustment of the merchants basically follows the changes of the tube factory, and it is expected that the seamless tube in Harbin may operate in a narrow range in the short term.