Favorable Factors:
1. Raw material costs for hot rolled strip steel have shown minor fluctuations, providing a stable baseline for pipe manufacturing expenses.
2. Steel futures have experienced slight recoveries, which helps stabilize market sentiment and prevents aggressive price drops.
3. Pipe mills are maintaining steady production without concentrated shutdowns, ensuring a reliable supply chain for ongoing projects.
Adverse Factors:
1. Downstream demand remains notably weak, with end-users only making minimal necessary purchases due to cautious market attitudes.
2. Adverse weather conditions in key regions have restricted outdoor construction and infrastructure activities, slowing down overall consumption.
3. Social inventory is accumulating slightly while traders actively compress their stock levels to avoid potential downward price risks.
Outlook:
Given the current balance of weak downstream demand and steady but fragile raw material costs, ERW black steel pipe FOB prices are likely to remain flat in the near term. Market participants will probably stick to conservative operations until a clearer demand recovery emerges.
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