Since the beginning of 2018, the price of TP304 stainless steel tube has experienced several waves of price fluctuation.Earlier this year, under the had winter demand, prices rise, after the Spring Festival, however, demand has not released, TP304 stainless steel pipe prices rapid fall, inventories are in the process of price of the good digestion, then April demand release, prices, after rising, high clinch a deal, a good supply of steel mills, TP304 stainless steel pipe prices a significant adjustment.Then at the end of may, there was no sharp drop in demand, and prices rebounded under the stimulus of environmental protection, pushing prices to their highest level in the previous year.

Scrap tracking timber linkage, but due to various factors lead to the price of scrap steel is relatively stable, after the Spring Festival in the steel mills and production and good profits, prices rise, then because TP304 stainless steel pipe prices, scrap steel prices fall.Subsequently, the finished materials recovered, and the scrap steel also recovered, but the increase was obviously small TP304 stainless steel pipe, the price remained relatively stable.As a result, the price difference between TP304 stainless steel pipe and scrap steel has reached a new high in this year, and the cost performance of scrap steel has reached a new high and will not change in the short term.Therefore, the author obtains the following reasons through understanding the market situation of scrap steel and TP304 stainless steel pipe.

1. Xuzhou area continues to suspend production and reduce the amount of scrap steel

So far, the steel mills in xuzhou have stopped production for more than a month. As a result, the demand for scrap steel in xuzhou has dropped to almost zero.According to incomplete statistics, the local steel output more than 15 million tons, the demand for steel scrap, xuzhou region long shutdown as a direct result of sunan area includes the zhejiang region significantly reduce the overall scrap steel demand, prices, has also led to purchase scrap in the areas of southern mentality change, maintain a relatively stable price, in order to keep the cost at a relatively low level.

2. The environmental protection inspection team of liangguang district will check in, and the demand for scrap steel will be one city less

Since the end of may, with the environmental group into the region of guangdong, and large areas of guangdong steel plant shut down, the zhejiang region has a large number of scrap steel in guangdong, guangdong area steel especially mini-mill production, leading to loss of scrap steel demand.Steel scrap steel procurement policy more flexible to fujian region, in view of the south jiangsu shagang steel mills have no scrap purchase price adjustment, time according to the market supply situation adjust the purchase price, scrap steel rose.

3. The local electric furnace plant stops production due to failure, and more than 2000 tons of scrap steel are reduced daily
According to zheheng steel, on May 26, in the province of a mini-mill production due to the failure parts workshop production, so far still in a state of shutdown, so lead to scrap steel demand, reduce the province more than 2000 tons.As the steel mill is located in jiaxing area where waste steel is distributed, its scrap steel stoppage has great influence on the market mentality.Meanwhile south jiangsu new three chau, shagang, wing steel and transit of large and medium-sized steel mills such as the recent production has reduced due to various factors, so the scrap steel purchase compared to previous mindset also change, yes scrap suppliers a poor state of mind.

4.Environmental protection requirements are more stringent, scrap steel difficult to prepare inventory
Improve from last year, the environmental protection requirements, to scrap area requires a big increase, accord with environmental protection requirement of scrap steel space is less, so scrap inventory more troublesome, scrap steel is difficult to do inventory for a long time.According to reaction TP304 stainless steel pipe traders, basic situation now is scrap steel after acquisition directly into the steel mill, its no longer do inventory, because there is no suitable venue, and inventory cost is higher, the steel mill to the requirement of steel scrap is also higher.As a result, even if the steel mill lowers the purchase price of scrap steel, the traders can't refuse to deliver the goods. The TP304 stainless steel pipe trader's right to speak is further weakened due to site reasons.

In general, continuous environmental cause steel supply reduction, conversely reduces scrap steel demand, so in the case of steel status more and more strong, TP304 stainless steel tube and steel scrap spreads widened further, and without diminishing the short-term trend.