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The shipbuilding profile steel market may be strong first and then weak in the second half of the year
The middle of the year is approaching. In addition to a brief rise in prices from mid-late February to mid-March and mid-May, the shipbuilding profile steel market has been surrounded by declines in the past six months.
Specifically, from January to early February, affected by the epidemic situation, shipbuilding profile steel mills' quotations remained basically stable, and the market staged a "good price but no market". In mid-February, shipbuilding profile steel prices continued to decline. In March, as the traditional peak season, the market stepped out of a good market in the first half of March and reached the price high of the first half of the year. However, before and after the Qingming Festival holiday in April, the peak season did not appear. The high yield in the first quarter faced weak demand, which led to high inventories.
In May, the production restriction policy was implemented again in Tangshan area. Under the influence of cost and capital pressure, the operating rate of small and medium-sized shipbuilding profile steel companies declined significantly, and the first-tier steel mills were also overhauled to varying degrees, intending to control production and alleviate inventory pressure in the factory and the spot market. However, within a few days, the market heard that some steel mills could continue to produce, and the market operating rate rose again to about 89%, which led to the profitability of shipbuilding profile steel mills. Entering June, steel quotations continued to rise due to both billet and futures boosts, but market transactions shrank. The supply and demand of the market is weak, and the hype factors that have appeared from time to time have not ignited the enthusiasm of shipbuilding profile steel traders for purchasing, and the downstream market is still "struggling."
The shipbuilding profile steel market still faces many difficulties in the second half of the year. Analysts believe that in the second half of the year, the shipbuilding profile steel market will show a strong first and then a weak trend. The shipbuilding profile steel price may rebound strongly around September. After late October, it may return to the weak market. In November and December, under the influence of factors such as the disappearance of "winter reserve" market and the off-season of traditional demand, the shipbuilding profile steel price may fall to the low level of the year again.