904L stainless steel pipe market gradually goes out of the traditional peak season, and the effective construction time gradually decreases

In September 2022, due to the strong expectation of demand release in the peak season, the enthusiasm of the steel plant to resume production was significantly enhanced, driving the output of 904L stainless steel tubes to rise significantly. In September, the daily output of crude steel picked up significantly. From the perspective of the average daily output of pig iron, crude steel and steel in China, the daily output of crude steel picked up significantly in September, which not only maintained the year-on-year growth, but also was significantly higher than the level of the same period in 2019. At the same time, the daily production of pig iron and 904L stainless steel pipe also showed a synchronous recovery trend, indicating that the domestic 904L stainless steel pipe manufacturers' capacity release was significantly enhanced due to the existence of demand release expectations and the improvement of steel plant profits.

From the perspective of the average daily output of key large and medium-sized steel enterprises, the capacity release of large and medium-sized steel production enterprises has been significantly accelerated, indicating that large and medium-sized steel enterprises have accelerated the production rhythm of 904L stainless steel tubes under the guidance of the expected enhanced demand release.

In October, the crude steel daily output will be pressured back to October. Although the domestic 904L stainless steel pipe market is in the traditional peak demand season, the release of terminal demand is less than expected. At the same time, due to the relatively strong cost and the pressure bearing shock of the price of 904L stainless steel pipe, the profit of the steel plant is significantly reduced, which also suppresses the release of the steel plant's capacity. From the current change of blast furnace operation rate, the production release strength of 904L stainless steel pipe enterprises shows a trend of high decline. From the data of ten day production of key large and medium-sized iron and steel enterprises, due to the unsatisfactory release of demand in the traditional peak season, the stock of steel plants remains high, the profits of steel enterprises shrink again, and steel plants have also begun to increase the intensity of maintenance and production reduction.

Since this year, all regions and departments have actively played the role of coordination mechanism for promoting effective investment in important projects, made good use of policy oriented development financial instruments and local special bonds, vigorously promoted the implementation of projects as soon as possible, accelerated the formation of physical workload, played a key role in investment, steadily increased investment in manufacturing industry, continued to make efforts in infrastructure investment, significantly driven by construction and installation investment, and accelerated the growth of investment in the purchase of equipment, tools and instruments, With the continuous release of the effectiveness of the economic stabilization package policy and the continuation policy, the construction of major projects has accelerated, the scale of effective investment has continued to expand, and the key role of economic recovery has been enhanced. Next, we should solidly implement a series of measures, such as activating the balance limit of local special bonds, special refinancing and supporting financial interest subsidy to support equipment upgrading and transformation in some areas, and accelerating the construction of agricultural and rural infrastructure, to promote the expansion of effective investment; We will optimize the environment for private investment, give full play to the role of the government in guiding and leveraging investment, effectively mobilize the enthusiasm of private investment, and promote sustainable investment.

From the supply side, although the expectation of warmer demand still exists, the actual release of 904L stainless steel pipe terminal demand is still not as strong as the market expectation. At the same time, due to the relatively strong cost support and the pressure bearing shock of 904L stainless steel pipe price, the steel plant has been double squeezed, and the profit of finished products has also significantly shrunk, which also limits the release of steel plant capacity.

At present, because the 904L stainless steel pipe market is gradually out of the traditional peak season, the effective construction time is gradually reduced, the release of terminal demand is limited, the profits of steel plants turn to losses again, and the reduction of maintenance production starts to increase, so the domestic steel output will show a pressure bearing trend in October.