After a significant decline in the 304L stainless steel pipe market, can we expect a rebound? The recent downward trend in the 304L stainless steel pipe market is quite obvious, and there will be a technical rebound demand in the later stage, and the market will have a certain increase in replenishment. However, the balance between supply and demand is relatively weak, and there is expected to be some room for adjustment in May. After the rainy season in June, demand will decrease. If the production of 304L stainless steel pipes remains high, it will be difficult for prices to change the downward trend.
From the supply side perspective, the current profit per ton of steel is rarely positive, and steel mills are actively reducing production and increasing it; On the demand side, funding and construction conditions are not ideal, and weather conditions are poor, making it difficult for demand to fluctuate significantly upwards. The current expansion of the stock removal speed in the 304L stainless steel pipe market is mainly due to the proactive reduction of production by steel mills. The continuous decline has led to some losses for most traders, and the mentality of the 304L stainless steel pipe market has turned pessimistic. Short term 304L stainless steel pipe market price may fluctuate slightly.
From the perspective of the 304L stainless steel pipe market throughout the year, prices still need to undergo several rounds of adjustment before there is a certain chance of rebound, and the performance in the second half of the year may be slightly stronger than that in the first half. There is a high probability that the crude steel production in 2023 will not be higher than or even lower than 2022. The strong expectation of production reduction in the second and third quarters provides some support for the price of 304L stainless steel pipes that have fallen to the bottom.
Post time: Apr-27-2023