Towards the end of the month, the price adjustment of cold-drawn steel pipe is mainly weak. For next month's market, Wuxi Seamless Steel Tube Plant believes that it will remain at a high level. The following will be analyzed from three aspects: the start-up rate of steel mills, inventory and implementation of the new national standard for cold-drawn steel tubes. Taking Tangshan area as an example, Wuxi Seamless Steel Tube Plant intercepted strip steel, profile and construction materials from the end of September to the end of October. Except for the start-up rate of strip steel, profiles and building materials are maintained at about 30%, and the overall trend is downward. It is understood that the Tangshan area is affected by the poor air quality, the implementation of the policy of environmental protection and production restriction is still stricter, to a certain extent, inhibiting the start of steel mills. Lower start-up rate has become a strong support for steel mill tender price. 自国庆假期归来，库存连续两周下降，18日统计螺纹411.6万吨降6.4%;线材135.6万吨降7.1%，25日统计螺纹377.7万吨降8.2%;线材121.2万吨降10.7%。地产调控背景下多数房企加快赶工进度、在“年尾效应”即将到来之际，尽力提升资金回笼效率以及在国家扩大基建投资的政策指引下，多地均开始了一批新的基建项目，对阶段性钢材需求量较大。库存的大幅下滑，加重了商家的挺价意愿。
Since the National Day holiday, inventory has been declining for two consecutive weeks, with the 18-day statistical thread 4116,000 tons down by 6.4%; wire rod 1356,000 tons down by 7.1%, 25-day statistical thread 3777,000 tons down by 8.2%; wire rod 1212,000 tons down by 10.7%. Under the background of real estate regulation and control, most of the housing enterprises have accelerated the pace of construction, made every effort to improve the efficiency of fund withdrawal and under the guidance of the national policy of expanding capital investment, started a number of new infrastructure projects in many places, with a large demand for stage steel. The sharp decline in inventory has aggravated the willingness of merchants to bid.
The new national standard for cold-drawn steel tubes numbered GB/T1499.2-2018 was issued on February 6, 2018, and will be put into effect on November 1, 2018. The issuance of the new national standard will fundamentally block the market circulation of water-piercing reinforcing steel bar and increase the demand for alloy elements to a certain extent. Vanadium-nitrogen alloy, as a production ingredient, is not only tight but also expensive, which undoubtedly increases the production cost of threads and becomes another influencing factor to raise the price.
Generally speaking, although demand weakened in November, the favorable factors still tended to dominate, and with the coming of the heating season, the pressure at the supply side contracted. Therefore, Wuxi Seamless Steel Tube Factory believes that the price of cold-drawn steel tube will still run at a high level after reasonable callback.
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