Due to the increase in volume and price, the profit growth rate of seamless stainless steel pipes in the first half of the year has significantly accelerated, and the efficiency of steel enterprises has improved significantly. In addition, the steel company's asset-liability ratio continued to decline.

Steel companies actively

The high price of seamless stainless steel pipes has led to the active profitability of steel enterprises. In addition, it is expected that the production restriction measures will be more stringent this winter, and steel mills will seize the time to expand production. This is not difficult to explain the high growth rate of seamless stainless steel pipe production in the first half of the year. .

Although capacity is limited, the operating rate of many steel companies has increased. At present, the same blast furnace can produce 10% more crude steel than before. Steel companies have also used iron-rich mines to increase productivity, and the proportion of scrap scrap in raw materials has increased from 10% to 30%.

The data shows that a large number of seamless stainless steel pipe production leads to oversupply in the market.

According to the news, seamless stainless steel pipe stocks have continued to decline since March, hitting this year's low in July. Customs data shows that stainless steel exports have not increased. However, through the growth rate of 6.7% GDP in the second quarter, it does not constitute a prerequisite for the surge in demand for seamless stainless steel pipes.

Risk control in the second half of the year

In June, China's crude steel output reached a record high, and if it continues to maintain high output in the second half of the year, it will further increase the pressure and risk of the seamless stainless steel pipe market. Uncertainties will increase in the second half of the year, especially international trade frictions, stoppages in the heating season, and fuel price fluctuations will bring new challenges.

Future demand is questioned by the market, but the price of seamless stainless steel pipes is high. The national economy will continue to be stable overall. However, with the continuous adjustment of the economic structure, the investment has shifted from “Tiegongji” to strategic emerging industries and high-tech industries. The traditional steel industry has increased the demand for seamless stainless steel pipes, and turned to quality and quality improvement. Seamless stainless steel pipe companies have put forward higher requirements.

Driven by structural adjustments and interests, the impulse to add new capacity and the resurgence of “strip steel” still exist, and it is urgent to establish a long-term mechanism for prohibiting new capacity and preventing the re-ignition of “strip steel”.