Metals Supplier News

What are the main characteristics of stainless steel coil operation
2022-02-07

At present, the operation of stainless steel coil mainly presents the following characteristics:

First, the impact of environmental protection and production restriction is obvious.

Second, the growth rate of social inventory slowed down. After the Spring Festival this year, affected by the call for "on-site New Year greetings", the resumption progress of downstream projects was earlier than that in previous years. In the first and middle of March, with the rapid increase in the operating rate of construction sites and factories, the demand for steel was gradually released, the growth rate of social inventory of steel began to slow down, and the relationship between market supply and demand improved. Cold rolled stainless steel sheet customers received fewer orders after the Spring Festival, especially export orders, which basically digested the orders before the Spring Festival. Affected by the lower price of steel pipe, the inventory of steel pipe customers is generally high. according to

So far, according to the price calculation of ground bar steel, the pipe factory is in the state of upside down profit. In addition, after the Spring Festival, the steel price soared, the fear of heights among pipe factory customers increased, and the enthusiasm for picking up goods was greatly reduced. Guardrail customers are also in a situation of high raw material inventory and difficult order receiving. March is the off-season of guardrail market. Coupled with the continuous upgrading of environmental protection, the production reduction and shutdown of guardrail customers are more frequent. At present, destocking is expected to continue to perform poorly. In the final analysis, due to the high proportion of just needed procurement in the terminal industry and the low proportion of speculative procurement in the market, the destocking speed is not smooth. Considering that April is approaching, the warehouse out of winter storage resources is gradually completed, the circulation scope of high-cost resources is expanded, and the downstream procurement cost may be further increased. It is expected that the warehouse removal rate will slow down in the later stage.


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