Market situation and supply and demand situation of seamless steel pipes in 2024

Regarding the market situation of seamless steel pipes in China in November 2024, it can be introduced from the following aspects:

1. Market price dynamics

Baosteel price adjustment:

In October 2024, Baosteel issued an announcement on the adjustment of domestic futures sales prices of steel pipes and bars in November 2024. Among them, the base price of oil well pipes remains unchanged, but the base prices of 140, precision, Lubao and other specifications have been increased by 500 yuan/ton; the base price of HFW has also been increased by 500 yuan/ton; the base price of Baoshan wire, Baote structural steel wire, and Qingshan industrial wire has been increased by 400 yuan/ton; the base price of Baoshan primary rolled bars and square steel, Baote bars has also been increased by 400 yuan/ton. This adjustment reflects the changes in market supply and demand and the consideration of enterprise cost control.

Market quotation situation:

According to the data of e-commerce platforms such as Baidu Aicaigou, there are differences in the quotations of seamless steel pipes of different brands and specifications. For example, some manufacturers offer Q355D large-diameter seamless steel pipes at 4,950 yuan/ton, while other manufacturers offer 20# precision seamless pipes at 4,300 yuan/ton. These quotations are affected by many factors, including raw material costs, production processes, brand influence, etc.

2. Market supply and demand

Production and capacity:

In recent years, China's seamless steel pipe production has remained at a high level, but due to factors such as declining industry profits and intensified market competition, the production of seamless steel pipes in the first half of 2024 has declined to a certain extent. It is estimated that the annual seamless pipe production in 2024 will be about 29.8 million tons to 30 million tons, and the capacity utilization rate will be about 66%. Although the capacity is increasing, the capacity utilization rate has remained at a low level.

Demand changes:

From the demand side, the demand for seamless steel pipes is affected by many factors. On the one hand, with the recovery of the global economy and the accelerated advancement of infrastructure construction, the market demand for seamless steel pipes continues to increase under the impetus of industries such as oil, natural gas, and chemicals. On the other hand, affected by the regulatory policies of domestic real estate, infrastructure and other industries, the demand for seamless steel pipes also shows a certain volatility. It is expected that the domestic demand for seamless pipes will show a downward trend in 2024, but as the market gradually enters the peak season and the national policy supports it, the market demand may rebound briefly.

3. Market competition pattern

Industry concentration:

The competition pattern of the seamless steel pipe market is relatively concentrated, and many domestic and foreign companies have entered this field. Large group companies are gradually emerging, and the industry concentration has increased significantly. In the future, the merger and reorganization of the seamless steel pipe industry will continue to accelerate. It is expected that the top 5 production capacity of seamless steel pipe group companies will reach 50% during the 14th Five-Year Plan period.

Localization and import substitution:

With the continuous improvement of the manufacturing level of domestic seamless steel pipes, some high-end seamless steel pipes that could only rely on imports before have a clear trend of localization, and some high-end seamless steel pipes have gradually been replaced by imports. It is expected that as the localization ratio of high-end steel pipes will further increase in the future, the competitiveness of companies that can produce high-end seamless steel pipe import substitutes will be more prominent.

4. Future development trends

Technology upgrade:

In the future, the seamless steel pipe industry will pay more attention to technological innovation and upgrading. The introduction and application of high-tech technologies such as digital manufacturing and intelligent production will greatly improve the performance and processing efficiency of products. Especially in the fields of energy conservation and emission reduction and green manufacturing, the optimized use of composite materials and the application of advanced welding technology will significantly improve resource utilization.

Environmental protection requirements:

With the improvement of global environmental awareness and the strengthening of environmental protection policies, the seamless steel pipe industry must increase environmental protection investment to achieve green production. In the future, the industry will pay more attention to sustainable development and adopt more environmentally friendly production processes and materials to reduce pollution emissions in the production process.

Market demand:

In the next few years, with the recovery of the global economy and the development of emerging markets, the market demand for seamless steel pipes will continue to increase. Especially in emerging fields such as new energy and lightweight automobiles, seamless steel pipes will show broader application prospects.

In summary, the market price of seamless steel pipes in November is affected by many factors, including market price dynamics, market supply and demand conditions, market competition pattern, and future development trends. Investors and practitioners should pay close attention to market dynamics and policy changes to formulate reasonable business strategies.

Hunan Standard Steel Co., Ltd is a leading seamless pipe and welded pipe manufacturer & supplier serving diverse industries with multiple types, grades, diameters and lengths of pipe. For more, visit: https://www.hu-steel.com