Demand at weak levels in local Chinese steel pipe market

Local Chinese seamless pipe prices have moved sideways in the past week, while welded pipe prices have declined in the same period.

As of September 21, 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 $832mt (RMB 5,483/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $830/mt (RMB 5,467/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 $680/mt (RMB 4,483/mt) and $676/mt (RMB 4,453/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has followed a stable trend in the past seven days, while overall trading activity has been weak, with downstream buyers mostly maintaining a wait-and-see stance. Decreases in supply volumes due to environmental measures have provided some support for seamless pipe prices. As for the coming week, it is believed that the seamless pipe market will continue its stable trend.

The Chinese domestic welded pipe market has moved on a downward trend during the past, while trading activity in this market has also been weak. Upstream prices of steel strip and other raw materials have decreased and this is the main reason for the further decline in welded pipe prices. It is thought that domestic welded pipe prices will maintain their soft trend in the coming week.

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

$1 = RMB 6.60