The Chinese domestic steel pipe market has moved on a stable trend in terms of both seamless and welded pipe prices after the Spring Festival (Feb. 18-24).
As of February 26, 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.
Most seamless pipe producers and traders have not returned from their holiday yet and so quoted prices remain the same as before the holiday. The overall trading volume is extremely low. As for the coming week, it is believed that, unless upstream billet prices indicate a significant fluctuation, local seamless pipe prices will continue their stable trend.
In the local Chinese welded pipe market, prices are the same as before the holiday. Downstream construction activity has in general still not resumed after the holiday and so trading activity is still very slow. It is thought that traders will keep their prices stable in the coming week if steel strip prices also remain stable.