Profit of steel industry in the second quarter of 2016 is expected to turn to spiral submerged arc welded pipe

Profit of steel industry in the second quarter of 2016 is expected to turn to spiral submerged arc welded pipe

As steel prices continue to soar, the so-called "there must be brave men under reward", social funds began to flow in, spiral pipe manufacturers were able to resume production on a large scale, resulting in a significant increase in average daily output in April compared with March, spiral submerged arc welded pipe, and has approached the same period last year's level. According to last month's inventory data, the total stock of steel products in the society is 9.19 million tons, an increase of 1.2% annually compared with the previous two months. This is the first time that the total stock has increased in the past two months. According to the three stages mentioned in our previous report - iron ore replenishment, capacity utilization and inventory increase, we have entered the last stage, and the supply and demand pattern has reversed.

Since the first quarter of 2016, with the rebound of steel prices and the deepening of supply-side reform, although the industry is still in a loss state, but the industry is gradually out of the trough. It is expected that the industry profits in the second quarter of the steel industry will turn positive. Further specific to the individual level of the company, data show that the company which has made a good profit for two consecutive years mainly benefits from the continuous optimization and upgrading of product structure, the improvement of management ability, the improvement of R&D innovation ability and diversification.