Market trend of API oil pipe

　　Domestic steel prices as a whole maintained a weak downward trend, falling steadily. In July, the arrival of API oil pipe Market increased greatly, and the inventory of steel mill agents increased significantly. At the same time, in August, the spot market was sluggish, the middle demand was lacking, the downstream construction was slow, the market transaction was extremely cold, only sporadic purchasing, and merchants' shipment was not smooth. In addition, futures and other forward markets continued to decline, which depressed market confidence and caused some pessimism. Although the price of steel billet and other raw materials rose sharply, it did not effectively stimulate the market to form a comprehensive recovery. On the whole, inventory repression, steel market impulse energy is insufficient.

　　China has a steel-making capacity of nearly 1 billion tons, and the capacity utilization rate is only 72%, which is obviously lower than the normal level. The oil pipe blank industry is facing the situation of "high cost, low price and low profit level". It is expected that China's steel production demand will continue to grow this year, but the growth rate will decline. In the case of declining demand growth and difficult to effectively improve the supply and demand fundamentals, the domestic steel market price will remain low this year, and API oil pipe price will be monopolized, and it will still be easy to rise but difficult to fall. Despite the structural adjustment of the steel industry, the construction demand of small and medium-sized towns is enough to support the growth of steel consumption.

　　CISA expects that China's macro-economy will not slow down significantly in the future, but the growth pace of the steel industry will slow down, and the growth rate of crude steel production will fall this year. Overall, the market continued to weaken last week. There is a strong wait-and-see mood at the terminal, the inventory pressure of the agents remains, and the market confidence is insufficient. The short-term decline of the oil pipe Market is difficult to change, and it is expected that the market quotation today will be slightly disordered and consolidated. In addition, business capital pressure is too large, business willingness to ship is strong, so the market price shocks lower. In the near future, API oil pipe is not supported by favorable supporting factors, and the market price may be difficult to change the weak situation in the short term. However, with the arrival of March, it is expected that businesses will not be strong to adjust. Therefore, it is expected that the price of Tangshan billet will be stable and will run well today.