In September, the demand for welded pipes was released slowly, failing to meet previous years’ levels. Coupled with price declines in related products, this has led to a downward adjustment in cost support, with both 304 and 316L resources experiencing certain price drops throughout the month.
Manufacturers report that since September, the stainless steel welded pipe market has still not escaped the challenges of weak demand. The anticipated peak season effects have yet to materialize. However, the recent price declines, along with a slight increase in low-level restocking driven by essential needs before the National Day holiday, have contributed to a somewhat improved market trading atmosphere.
Nonetheless, end-user demand remains insufficient, with most customers adopting a cautious stance and continuing to observe market developments. Buying intentions are weak, as inquiries persist but actual order conversion rates remain generally low. Currently, manufacturers are mainly adjusting their production in line with market conditions, operating primarily based on incoming orders.
Ahead of the National Day holiday, downstream inventory replenishment has shown some improvement. Although large orders remain limited, smaller orders have seen a notable increase. Manufacturers are currently balancing the acceptance of new orders while actively processing and delivering earlier orders.
As the holiday approaches, restocking activities are stabilizing. Historically, some construction projects tend to resume after the National Day holiday, which could lead to a rebound in demand for stainless steel welded pipes and an increase in procurement, alleviating current supply-demand imbalances. Coupled with favorable macroeconomic conditions, this may provide some price support. Therefore, welded pipe prices are expected to maintain a stable trend post-holiday.