Favorable Factors:
1. Reduced supply from major strip producers as some production lines are permanently halted, tightening raw material availability in certain specifications.
2. Cash-based transactions remain the standard for raw material purchases, ensuring healthy liquidity and stable operations for mills.
Adverse Factors:
1. Declining raw material costs across strip steel and hot coil segments are directly pulling down the production costs for ERW pipes.
2. Broad downward adjustments in ex-works pricing from major steel mills indicate weak overall market demand and softening sentiment.
3. Continuous price cuts in upstream materials severely limit the cost support for finished black steel pipes.
Outlook:
Given the continuous softening of upstream raw material costs and the recent price cuts from major strip and coil producers, the cost support for ERW black steel pipes is weakening. With mills actively lowering their ex-works quotes to reflect the broader market trend, we expect pipe prices to remain under downward pressure in the near term.
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