The Chinese steel pipe market has moved on a stable trend in terms of seamless pipe prices in the past week, while the local welded pipe market has also been mostly stable, but with some minor downticks also seen.
As of November 13, 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 $575/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $608/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 $505/mt and $512/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has followed a sideways trend during the past week. The Asia Pacific Economic Co-operation (APEC) meeting in Beijing negatively impacted local seamless pipe production, providing support for the stable trend of seamless pipe prices in the given week. Market inventories are at low levels, while demand is also low because of the current off-season. As for next week, the market may continue its stable trend for a while, but downticks may also be seen later.
China's domestic welded pipe prices have mainly moved sideways in the past seven days, but some small declines have also been seen, especially in Guangzhou. Traders are trying to sell material but the overall demand volume is still low. In this context, some traders have been giving certain discounts or have reduced quotations slightly due to pressure from tightness of funds. Market inventory is at normal levels. As for the coming week, it is believed that the market may mostly follow a stable trend.