Chinese seamless tube factory stock goes down due to price stimulation

During the past week, Chinese ferrous metal futures showed an uptrend under the influence of the growth in the stock market. Meanwhile, price in the actual market also increased during the whole week, which finally led to a price increase of seamless pipe mostly in the Shandong and Wuxi Region.

Since the seamless pipe inventories stopped growing after a 4-week continuous increase, a few more production lines were put into utilization. However, the elevating materials price might also reduce the profit of the steel tube factories.

According to the estimation, this week the Chinese seamless tube price in the market would still remain stable and might go up a little.