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Stainless steel seamless pipe spot fundamentals remain wide balance

Since December 2017 stainless steel seamless pipe of the basic situation, generally can be divided into apparent three stages: the first stage in the middle of December 2017 by the late January this year, as the basis to historic highs after the rapid adjustment stage;The second stage is from late January to early may. This stage is the gradual recovery of the base difference.The third stage is the current base differential slow convergence stage, which has lasted since early may.


Since the beginning of June, both spot and futures prices of stainless steel seamless pipe have rebounded, but the base difference is still in the shrinking situation, and the current price trend is quite subtle.


From the perspective of stainless steel seamless pipe spot, due to the increase in the price of imported ore and coke in May, the cost has enhanced the support effect on the price of stainless steel seamless pipe in the later period.And the environmental protection inspection "looking back", the ground bar steel strict prevention "the dead ash reignite", the Shanghai cooperation summit limit production, the social inventory continuously rapid decline, all has formed certain support to the stainless steel seamless pipe market.


On the other hand, with the arrival of high temperature and rainy season, construction projects will be limited and the demand will be weakened.However, driven by high profits, steel production capacity will still be released at a high level, and the supply and demand relationship of stainless seamless pipe market presents a wide balance pattern, which will restrain the price to some extent.


Despite the news of production curbs, crude steel production has continued to rise this year, driven by high profits.The stainless steel seamless pipe market is beginning to realize that environmental protection can only slow down the pace of production, high profit will bring high supply will only be late.


The above analysis is only the author of the recent seamless stainless steel pipe base differential trend of some shallow views.It is necessary to point out that the biggest value and significance of market analysis is, how to analysis combined with our financial derivatives, realize the commodity traders and producers to reduce the purpose of the enterprise stock exposure.


It is self-evident that industrial enterprises have a set of methods and mechanisms to use futures to promote production and operation.From the perspective of international experience, the basic differential trade and otc derivatives business are closely related to the production and operation of enterprises, which is an important way for enterprises to manage risks in the futures market.




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