Demand of ERW pipe in July

　　The de stocking of ERW pipe market is still continuing, but with the arrival of Meiyu season, the steel market demand is changing from the peak season to the off-season. The release of rigid demand will be limited by the rain water potential. It is difficult to recover the micro stimulation measures in the short term. In addition, the capital pressure at the end of the month aggravates the interference, and the steel rebound is weak. Although the market is good, it is still difficult to reverse the weak situation of the steel market. It is expected this week The price of erw pipe steel is weak and stable, and the stock may be increased

　　ERW pipe inventory: data show that the national steel inventory accelerated to decline last week, the largest weekly decline since this round of decline cycle. The cumulative decline of national steel inventory in recent 12 weeks has reached 29.43%, and the current inventory level has decreased by 20.64% compared with the same period last year. At present, the social inventory has been reduced to a low level, and it only takes 2-3 weeks to reach the low point in December 2013 according to the current de chemical speed. The market is excessively pessimistic, which leads to the insufficient supply capacity of social inventory of ERW pipe.

　　Demand for ERW pipe: the data shows that the growth rate of investment, consumption, industrial added value, social electricity consumption, real estate investment and new construction area of houses have decreased to varying degrees. Although recently, under the influence of "incentive policy", some data have been unexpectedly improved. For example, the PMI of domestic manufacturing industry in May was 50.8%, up 0.2% compared with April. However, judging from the overall market situation, it does not mean that the domestic economic policy is completely improved. From the downstream specific situation, East China will face the plum rain season in June. Meanwhile, the domestic high-temperature weather will gradually increase, which will also have a certain impact on the downstream engineering construction, and to a certain extent, drag down the normal release of downstream ERW pipe demand. Therefore, it is expected that the downstream demand will not significantly improve in the whole July.

　　Steel mills: Although the ex factory prices of steel mills continue to decline recently, in order to prevent the unlimited decline of steel prices and maintain the bottom line of basic prices, steel mills have increased the sales of limited prices to traders. This, to a certain extent, inhibits the speed and range of steel price decline. At the same time, the sharp fall in steel prices has led to the continuous weakening of profitability and the lack of production kinetic energy of steel mills. In particular, some small and medium-sized steel mills, which are more flexible, have seen an increase in production reduction and production stoppage, thus inhibiting the amount of resources put into the ERW market