The output of stainless steel seamless pipe depends on the relationship between supply and demand and price change

  Experts point out that since 2017, the market for seamless stainless steel seamless has been able to rise so quickly, one of the important reasons is related to the policy of to excess capacity. On the basis of achieving significant results in 2016, 2017 is clearly positioned as " the year of capacity deepening ", in particular the" one size fits all " approach to"substandard steel ", which has largely stimulated the market. 
Recently, China has completed 63.4 % of its annual steel capacity targets and 46 % of coal capacity targets. And this data makes many market people excited unceasingly, firmly believe that the stainless steel seamless tube market will have a better development space. 
For the vast steel trade business, experienced the ups and downs in 2016, and the trend of the upward trend, this year's confidence has recovered significantly, they are optimistic about the later market, also promoted the market of stainless steel seamless. Of course, the recovery of confidence is not without root, mainly under the judgment of policy, demand and so on, and then driven by the market. 
Although the first half of this year, stainless steel factory operating rate has been high, the steel plant is not less production, but 304 stainless steel seamless social inventory is not high, this is the result of the market absorption, so the second half of the business situation will still be good, especially the demand for building stainless steel. 
In fact, in the market confidence of stainless steel seamless pipe, in addition to the impact of the message level, the most important factors are still on demand. 
It is expected to the later market prospects, stainless steel seamless enterprise is also increased horsepower production, to obtain profits, the production of nature is also increasing. However, this situation raises an unavoidable problem. Why is the capacity to produce at the same time the production is increasing, this is inconsistent with the original intention of capacity?
To this, the stainless steel spot supermarket analyst said, the stainless steel seamless pipe capacity does not mean to the production, production capacity is impossible and the social demand is basically equal, the output basically changes with the demand changes; Capacity utilization should also have a reasonable range, when the capacity utilization ratio is low, it is very important to control production, and expand production does not mean that there is profit. 
It is pointed out that our country to dissolve the excess capacity of stainless steel seamless pipe is to " capacity" rather than " production" as the goal. This is because although domestic crude steel consumption in our country has entered the downstream peak of arc peak, but still can maintain a large market in a long period of time, still need a certain output to meet, and improve the quality performance, to meet the higher requirements of the task is still arduous; Promoting the capacity of the production, help the survival of the fittest, not to limit the advantages of production capacity, effective supply. 
When the production capacity of stainless steel seamless pipe is much larger than the output, the capacity and output can not be compared, that is, the capacity does not mean output will decline, and the output growth may not necessarily indicate the increase of production capacity, the key is that the increase or decrease of output depends on the market demand. Therefore, for the current crude steel production record high, this is not inconsistent with the production of stainless steel seamless pipe, we can not deny the effectiveness of production capacity. 
The relationship between the production capacity and the output of seamless stainless steel seamless pipe is generally concerned in all aspects of society. The quantity of output depends on the relationship between supply and demand and the price change, the output change is to meet the market demand, and the enterprises of stainless steel seamless pipe according to the market supply and demand changes independently decided by the market. Therefore, it cannot be simply equated to production capacity, and even more cannot be confused with the two.

Related News

Jul 28, 2023

NORSOK M-650 is a globally recognized standard for the qualification of manufacturers of Marine engineering materials.It ...

Mar 14, 2022
Reliable Plant-KANGLONG, Reliable Country-CHINA

Facing the tremendours increase of Ni which decide the price of our round bar of stainless steel seamless pipe, our gover...

Mar 02, 2021
How we do to improve ourselves?

Quality is always the hot point for each production enterprise....

Nov 02, 2020
The new office environment, the original working attitude

Good environment will push you think positively, guide everything positively and do everything more powerful!...

Sep 20, 2020
Regular Inspection for Pipe

Besides the quality control on each process, we also paied more attention on the inspection of finished pipes....