Chinese domestic steel pipe market maintains its overall soft trend

China's steel pipe market, for both seamless and welded pipes, has trended down in the past week amid ongoing slack demand.
 
As of May 30, 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 $700/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $738/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 $611/mt and $617/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has moved on a downtrend in the past week, though the decrease margin was smaller than in the previous week. As regards producers, they generally do not need to pay off debts coming towards the end of the month and so they are under less pressure to reduce prices and collect cash. Meanwhile, traders are not inclined to build up their stocks amid the ongoing downtrend of prices. Overall, China's seamless pipe market is likely to indicate greater stability during the coming week. 
 
The Chinese domestic welded pipe market has continued its falling trend during the past week. Downstream demand is low, while market sentiment is also weak. In this context, traders have been reducing their prices in order to attract customers. In the meantime, steel strip prices are expected to continue their soft trend in the coming period and this is expected to influence the welded pipe market. With no signs of an improvement on the demand side, the domestic welded pipe market is expected to maintain its soft movement in the week ahead.