Chinese domestic steel pipe market still moving in upward direction

The local Chinese steel pipe market has indicated a strong upward trend in the past week.

As of November 10 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 $606/mt (RMB 4100/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $606/mt (RMB 4100/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 $483/mt (RMB 3267/mt) and $480/mt (RMB 3247/mt) respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has moved on an upward trend in the past seven days, while overall trading activity has remained at normal levels. On the upstream side, prices of billet and and raw materials have continued to rise, pushing up costs for seamless pipes. Seamless pipe supply volumes are on the low side. As for the coming week, domestic seamless pipe prices are expected to continue their upward movement. 

The Chinese domestic welded pipe market has seen strong increases in prices in the past week amid the overall upward movement of prices of raw materials and of prices in the steel markets. Costs have continued to rise for welded pipe producers. Trading activity is quite low and traders have concerns about the high price levels and also regarding the possible impact of any downturn in the futures market in the period ahead. Most traders are choosing not to build up their stocks at present. As for the coming week, welded pipe prices are expected to continue to rise. 

 

 

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.80