en 
Call
+8613166245535
This week, steel prices fluctuated slightly while iron ore prices remained relatively strong. Market sentiment was cautious.
On the international front, U.S. national debt surpassed 36 trillion USD, the U.S. dollar index remained weak, and the Federal Reserve is expected to have room for rate cuts.President Trump announced plans to impose an additional 10% tariff on all imports from China.
Domestically, China's industrial profits from January to October fell by 4.3% year-on-year, and policy expectations are expected to strengthen entering December. In the steel pipe sector, northern pipe mills have mostly lifted production restrictions, and this week saw a slight increase in seamless pipe production.
However, factory inventories remain under pressure. As the market enters the traditional off-season, demand is moderate, and supply-demand conditions are weak. As of November 29, seamless pipe prices in major cities remained mostly steady.
Price Trends:
According to Mysteel's data, as of November 29, the average price of 108*4.5mm seamless pipes in 28 major cities was 4460 CNY/ton, a slight drop of 5 CNY/ton compared to the previous week. Prices in most mainstream markets remained stable.
Raw Material Trends: By Friday, raw material prices showed a mixed trend. Shandong pipe billet prices rose by 60 CNY/ton week-on-week, while Jiangsu pipe billet prices fell by 20 CNY/ton. The price gap between Jiangsu and Shandong pipe billets slightly narrowed.
Pipe Mill Pricing Adjustments: Mysteel's survey of 34 sample seamless pipe mills shows that the prices of seamless pipes remained stable in most cases, with a few mills lowering prices by 20-30 CNY/ton.
Profit Trends:
Regarding seamless pipe profitability, the recent rise in raw material prices has led to shrinking profits for most mills. For example, in Shandong, the profit for a 20# hot-rolled Ф108*4.5mm seamless pipe mill dropped to -150 CNY/ton, a decrease of 30 CNY/ton week-on-week.
This week, the price of hot-rolled pipe billets in Shandong increased by 20 CNY/ton compared to last Friday. The main mills in Shandong kept their seamless pipe prices unchanged. In Shanghai, the price was 4440 CNY/ton, in Nanjing it was 4320 CNY/ton, and in Hangzhou it was 4420 CNY/ton.
Factory production increased slightly, and factory inventory showed a downward trend. Social inventory also decreased slightly.
In the southern regions, the market demand remained tepid as temperatures dropped. Trade merchants are not strongly motivated to replenish stock, instead focusing on reducing inventory in preparation for winter storage.
Overall, it is expected that prices in East China will remain steady next week.
Inventory Trends: According to Mysteel's survey of 123 nationwide merchants, social inventory of seamless pipes was 688,600 tons this week, a decrease of 3,100 tons week-on-week. Factory inventories surveyed by Mysteel (33 mills) were 700,100 tons, down 1,800 tons from the previous week, but up 22,600 tons compared to the same period last year. Raw material inventory decreased by 1,400 tons, but year-on-year, it increased by 1,200 tons.
Production Trends: This week, production increased slightly to 324,300 tons, up 1,700 tons from last week, and capacity utilization reached 70.47%, a 0.37% increase from last week. Operating rate remained stable at 50.82%, up by 8.2% compared to last month.
Regarding prices, raw material prices have risen slightly, providing some short-term cost support. However, mainstream mill prices are trending slightly weaker, and market prices have generally decreased.
On the supply side, the relaxation of environmental restrictions in many northern regions has led to a slight increase in production, but the rise is limited. Demand remains weak as the market enters the off-season, and the supply-demand pressure is high.
Sentiment in the market is cautious, with businesses adopting a wait-and-see attitude. The overall demand release is slow, and while expectations for macroeconomic recovery may rise in December, market conditions are likely to remain weak in the short term. Therefore, prices for seamless pipes are expected to fluctuate within a narrow range next week.
