Favorable Factors:
1. Some domestic mills are holding their production rates steady to manage inventory levels, preventing a complete collapse in supply.
2. Certain export orders with fixed contracts are providing a baseline of demand support for black steel pipes.
3. Previous price drops have brought costs closer to historical support levels, making further aggressive reductions less attractive for producers.
Adverse Factors:
1. Raw material costs for hot rolled coils and steel strips have been consistently sliding, weakening the cost support for welded pipes.
2. Downstream construction and manufacturing sectors are showing weak purchasing sentiment, leading to poor transaction volumes.
3. Scrap steel prices are facing continuous downward adjustments, further dragging down the overall cost structure.
4. Regional steel mills are actively lowering their ex-factory quotes to stimulate sluggish trading activity.
Outlook:
Given the persistent weakness in raw material costs and the lackluster end-user demand, the overall market sentiment remains cautious. ERW black steel pipe FOB prices are likely to stay under downward pressure in the near term as mills continue to adjust their quotes to match the fading purchasing interest.
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