The Chinese domestic steel pipe market has moved on an overall stable trend in the past seven days.
As of February 12, in China's three main steel markets, i.e., Shanghai, Guangzhou and Beijing, the average price of 20# (GB/T8162-1999) grade 108 mm x 4.5 mm seamless pipe now stands at $554/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $586/mt. Meanwhile, on the same date, Q195-215 grade 48 mm x 3.25 mm welded pipe and Q215-235 grade 114 mm x 3.75 mm welded pipe prices in the above markets are standing at $437/mt and $444/mt respectively. All the above prices include 17 percent VAT.
With the Spring Festival holiday (Feb. 18-24) drawing closer, overall trading activity in the local Chinese seamless pipe market has been at very low levels, with traders gradually exiting the market to start their holiday, and this has contributed to the stable trend of prices. It is expected that the market will continue its stable trend in the days before the holiday and also during the holiday.
The Chinese domestic welded pipe market has followed a stable trend in the past week amid very slow trading activity. Many producers have already started their holiday. Upstream steel strip prices are also stable, while demand from the downstream construction sector is drying up ahead of the holiday. The local welded pipe market is expected to continue its sideways movement in the coming period.