Seamless manufacturers, the way to go in the future

This seamless no gold or silver four season, the national infrastructure investment rose sharply not driven by growth in demand, and a lot of seamless pipes are speeding up production, so the seamless inventory increases, excess supply also behoove.
Seamless network of China believes that the annual growth rate of infrastructure investment this year can maintain more than 15% is difficult. With demand weakening, demand for restocking will come to an end, and growth is expected to slow again in the 2 quarter.
In addition, the market demand remains to be seen. Prior to 2016, the national seamless capacity to target is 45 million tons, this year will increase to 50 million tons, and this year even before the end of April to remove all steel. Originally expected seamless demand, because the production capacity will lead to higher prices, but the market is somewhat contrary to expectations.
Recent seamless stock increased by 30%-40%, including social inventory and seamless inventory, which is the recent decline in the price of seamless reasons. Next, although the country has to go seamless production capacity, but the price trend, or by the market. The next stage of development may depend on acceptance of work on the ground of steel, there may be a rebound in the price of seamless pipe. But the rebound will be affected by the overall demand, especially in the context of continued deleveraging by the country. "Prices are still dropping space, but will also be supported in the context of reform, and there is a certain rebound, but the rebound is limited."."