Judging from what we can see at the beginning of 2019, it is clear that the situation that made these buyers profitable last year still exists. When these buyers are profitable, so are we.steel pipe manufacturers
But the uncertainty surrounding a factor – the 232 tariffs that have been in effect since last summer – may leave suppliers in trouble and feel cold about our prediction that the tide will improve all ships.
The strange thing is that we are not worried that the tariff will remain unchanged.
We are worried that they will be lifted.
These works are in place in another good year.
As mentioned above, the situation is improving, especially in the oil and gas sector. Production in the United States is the highest speed in decades. Although world oil prices fell into a trough last year, the cost per barrel rose again.
We are also paying close attention to the ground conditions in western Texas. The observers they currently face are called “Permian pauses.” Crude oil inventories are increasing because the production of oil-rich basins exceeds the available capacity to ship them to refineries along the Gulf Coast.
Even if the US fossil fuel power generation industry is recently affected by regulatory pressures (and unfavourable public opinion), it seems that the current government is ready to bounce back if it continues to postpone emissions enforcement.
The demand for pipeline products is currently very strong, and we expect it to remain the same. But the tariffs on steel and aluminum levied from traditionally friendly trading partners are the cause of interesting supply.4×4 square tubing
Popular wisdom is not wise to impose new tariffs on old friends. It introduces uncertainty, and the commodity market does not like when they can’t see the glass of the crystal ball.
As a supplier of commodity steel pipe products, when we have a correct understanding of what is going to happen, it is always easier to buy and then priced. Tariffs make the future more difficult to predict. One thing you can predict is that steel importers pass on customs costs to buyers.
But you can’t produce steel pipes overnight, so suppliers can build inventory ahead of time based on forecasts of future demand.