Since the first half of 2016, because of the supply side of the reform, out of stainless steel production capacity and a series of measures, stainless steel seamless pipe prices began to recover.
Benefiting from the stainless steel seamless pipe prices last year, stainless steel seamless pipe business performance has been significantly improved As of now 36 listed stainless steel enterprises in China has 13 released last year's annual riport or performance Express, and there is no loss of business.
For the reasons for the performance changes, the supply side of stainless steel contraction, the market competition environment tends to be fair, stainless steel prices continue to rise. At the same time, the implementation of major asset restructuring, better improve the capital structure, reducing the cost of capital.
Not only improve the operating conditions, the domestic stainless steel market as a whole began to improve the domestic stainless steel seamless pipe industry as a whole to achieve a profitability. 2016 years, the stainless steel seamless pipe industry began to the process of production capacity. It can be seen that the production capacity does not directly affect the stainless steel seamless pipe industry output, so the price surge should be closely related to the floating demand.
For the main reasons for the increase in performance, stainless steel spot supermarket network analysts said that since 2017, stainless steel prices remain at a high level. At the same time, continue to optimize the "high-efficiency production, low-cost manufacturing" special steel system, so a substantial increase in profit year on year.
Stainless steel spot market in the production capacity to continue to overweight and infrastructure boost, the supply and demand fundamentals, the domestic stainless steel seamless pipe prices rose more than a thousand dollars last year, based on this year has continued to rise sharply.
Although this year's target than last year, the actual completion of the amount of steel production capacity of 65 million tons, coal production capacity of 290 million tons has been reduced, but taking into account last year, stainless steel seamless production capacity to remove the majority of inefficient production capacity is still high, the supply side To the production capacity is expected to move further in the direction of the substantive, especially the steel production capacity will be completely removed in the first half, the supply of stainless steel seamless pipe market will have a substantial impact.
With the market into the "golden march,silver April " consumption season, stainless steel pipe demand there is a further improvement in the expected. Supply level Development and Reform Commission clearly in the first half of the total ban on the production of construction steel power frequency furnace, intermediate frequency furnace production capacity, and two sessions during the North China steel mills limited production of 50%, and the Ministry of Environmental Protection from time to time environmental protection, the overall supply will have an impact, Especially the construction of stainless steel supply will continue to be significantly inhibited.
