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Sanitary fast-installed butterfly valves are subject to increased sales pressure and inventory begins to passively rise

by:Mayer     2021-08-20
Sanitary-grade quick-installed butterfly valves are subject to increased sales pressure and inventory began to passively rise. Last week, the price of sanitary-grade quick-installed butterfly valves fell first and then rose, but the current overall weakness has not changed. Data show that the output and inventory of key enterprises have rebounded significantly in early April, indicating that the production of stainless steel plants is still accelerating, the inventory pressure is increasing, and the price of sanitary fast-installed butterfly valves is still facing greater pressure. Industry insiders said that last week, the national sanitary fast-installed butterfly valve market inventory declined for the ninth consecutive week, and the inventory decline has continued to expand in the last two weeks. The current inventory level has increased by 39.11% over the same period last year. While the output remains at a high level, social inventories are still rapidly declining, which also proves that in the current peak consumption season, the overall domestic stainless steel seamless pipe market demand is relatively strong. At the same time, however, the inventory of stainless steel plants has continued to rise in recent weeks, indicating that the inventory pressure of sanitary fast-install butterfly valve plants is still increasing. The above-mentioned people pointed out that the output and inventory of key enterprises in the first half of April have rebounded significantly, indicating that the production of stainless steel plants is still accelerating, and the inventory pressure is increasing. From the perspective of futures prices, starting from the second half of last week, iron ore and sanitary fast-installed butterfly valve material futures have both rebounded to a certain extent. But analysts believe that the market fundamentals have not changed much, and there are still many negative factors. It is expected that the price of sanitary fast-installed butterfly valves is still in a downward channel in the later stage, and it is difficult to reverse in the short term. After the market inventory is digested, as the peak season demand comes in the second half of the year, and the implementation of infrastructure investment is implemented, there may be a turning point. According to our company's market survey, the coal industry's efforts to reduce capacity this year will be weaker than last year, which will have a certain impact on the confidence in the sanitary fast-installed butterfly valve market. In terms of raw materials, the price of iron ore rebounded strongly or was short-lived. The later period should be mainly due to fluctuations. The main reason is that the poor transaction in the terminal market in the current period caused a backlog of finished materials, and then after the profit of the sanitary fast-install butterfly valve factory continued to shrink, The start of the work fell and the demand for iron ore weakened. Analysts said that the average daily output of crude steel in China hit a record high in March, and the average daily output of crude steel in key stainless steel companies continued to rise in early April, triggering market concerns about increased supply. At present, due to increased sales pressure at the stainless steel plant, inventory has begun to passively rise, and sanitary fast-installed butterfly valve factories are not confident in the price, which will put greater pressure on the price of sanitary fast-installed butterfly valves in the later period.
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