Why The Steel Pipe Rising Up Continuously In 2017’s Winter?

Why the steel pipe rising up continuously in 2017’s winter?


To understand the steel pipe’s price ,you should know the trend of steel price.

Winter is the low season of the Chinese steel industry. However, this winter, the steel market is so hot.Steel prices have maintained a strong rally since late November, especially in late November.


According to China Iron and Steel Association,China's steel price index (CSPI) was 121.23 points from 27th,November to 1th,Dec,growth of 2.57 points, or 2.16%. Among them, the price of high speed steel rod is 4645 yuan per ton, the week ratio is 190 yuan per ton; the price of the screw steel rebar is 4480 yuan / ton, and the week ratio is up 194 yuan / ton. In December.In December, the price of the long steel products such as steel pipe and steel bar in some steel enterprises has exceeded 5,000 yuan/ton.

Experts said that the recent rising up mainly due to the following aspects:

Firstly,heavy smog is predicted in early December across northern provinces, leading to the decision to introduce emergency measures to help improve air quality.The government take environmental protection in 26 cities of north china,even hot-dipped galvanization and 3LPE coating was forbidden in some cities.

Secondly,production cuts has affected the supply of steel products, and both social inventories and enterprise inventories have declined.

Thirdly, the Chinese especially in East and Southern China, Some construction sites are speeding up the pace, so demand remains robust.

Wang Yingsheng, director of the Market Research Department of Steel Association pointed that,If steel prices rose too fast, it would adversely affect the future development of the iron and steel industry.“Firstly,the price rise to much in short term,will break the psychological price expectations of end users and steel traders,leading them to keep out of stock or less inventory.In fact, when the winter gets colder and colder and the Spring Festival holiday arrival, a number of construction sites will closed and the consumption of steel will be reduced.On the other hand, prices are rising too fast, will cause the price of raw materials such as iron and coal rising up.Once the price rises, it will be hard to come down.These extra costs eventually require steel companies to pay for themselves”Wang said.

Wang appealed,"I hope everyone can clearly understand the dangerous of the sharp rise in steel prices and jointly safeguard the stable development of the steel industry and the upstream and downstream industries."


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