Raw material price trend since Nov in Chinese steel market

Please kindly find attached picture of raw material price trend in Chinese steel market since Nov, 2017. You can see that price is keep rising in Dec.

December is a peak season for steel pipe industry. As Christmas is coming, most of our customers may either choose to have some stock already ordered in or before Nov, or choose to buy pipes after Christmas. But the main reason for the increasing is up to Chinese governments control over environmental control, thus leads to steel related products production limitation. Steel pipes demands in still high as September, October, November are peak seasons for steel pipe industry. But supply decrease, thus leads to the increasing for steel related products.

As the 19th National Peoples Congress in China closing, all related department are seeing all related terms into reality. Environmental protection is the most important one of them. As most of Chinas steel manufacturer are in North of China, especially Tianjin and Cangzhou these two steel pipe base are near our capital city, so a new round of limitation are begin form these two cities. 

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