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Galvanized Pipe Market New Fulcrum

Jun 21, 2017

Galvanized Pipe market new fulcrum
From the listed Galvanized Pipe company's 2015 semi-annual report can be found, the average gross profit margin of listed companies fell 0.36 percentage points to 7.59%, net profit margin fell 2.24 percentage points to -1.86%.
From the data point of view, Galvanized Pipe consumption has reached the peak area, which is a lot of institutions and experts more unified view, some experts predict that the industry or will enter a period of 10 to 22 years of deep adjustment period. In view of this, hot Galvanized Pipe industry capacity contraction will be a long-term phenomenon. Coupled with the cost of many small and medium-sized private enterprises uplift, funding chain breaks, one after another out of the market, which will lead to a long time in the low demand to extend the hot Galvanized Pipe industry recovery time.
Continuous season is not busy not superstition gold nine
Although from the seasonal point of view, "gold nine silver ten" demand is still a certain improvement is expected. But after the parade, the Tianjin area Galvanized Pipe plant complex production will drive the national blast furnace operating rate continues to rise, the demand will be difficult to significantly improve the supply of re-increase will put pressure on steel prices, further affecting steel profits. After all, so that hot Galvanized Pipe industry once again into a vicious circle, while the manufacturing industry is still weak to return, so the market is expected to rise is not reliable.
It can be seen that the current hot Galvanized Pipe industry is still uncertain factors, and supply and demand contradiction is still can not be ignored, according to past experience, infrastructure can give the market how much vitality remains to be seen, so September Of the market is not as good as imagined, it is recommended that businesses are still fast forward, to avoid risk-based.
 The zinc layer is an electroplated layer, and the zinc layer is independently layered with the steel pipe base. Zinc layer is thin, zinc layer simply attached to the steel pipe matrix, easy to fall off. So its poor corrosion resistance. In the new residential, the use of cold Galvanized Pipe as a water supply pipe.
Delivery is unprofitable. However, the return of rebar rebar, iron ore futures price difference can be found, a considerable part of the delivery is in the futures than the spot premium state. This shows that in addition to the current price difference factors, there are other factors that affect the delivery of market participants will, that is, holding the shipping pressure.
Through the futures market delivery, both the successful completion of a certain number of shipments, and because the delivery system to ensure that enterprises will be more quickly get the money, which is Galvanized Pipe companies are willing to futures market delivery of important reasons. For the long head, in the futures premium state, through the futures market can get high-quality low-cost supply, its participation is therefore relatively high enthusiasm.