As of June 24, in China's three main steel markets, i.e., Shanghai, Guangzhou, Beijing, the average price of 20# (GB/T8162-1999) grade 108 mm x 4.5 mm seamless pipe now stands at $914/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $919/mt. Compared to the eastern China market where a small decline was seen, the prices in other districts have remained stable; meanwhile, 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 both stand at $772/mt, down $10/mt and $6/mt respectively compared to last week. All the above prices include 17 percent VAT.
Seamless pipe prices remain stable
In eastern China, producers have not made any great changes to their seamless pipe prices. The expectation of traders is for a decline. Furthermore, some market prices have declined by about RMB 50/mt ($7.7/mt). The eastern China seamless pipe market price is expected to see small downward movements in the short-term.
In the past week, the seamless pipe market in northern China remained stable. However demand is still low. As for inventory, there have been some reductions in the past week. The price reductions of Baosteel, Anshan Iron and Steel and Baotou Steel have caused traders to maintain a wait-and-see approach to the market.
In the southern Chinese market, seamless pipe prices have followed a stable movement in the past week. The trading volume remains low, with a general wait-and-see mood prevailing in the market. As the risk of downward price movement is obvious, traders do not want to build up stocks at present. Customers need to very cautious as regards placing orders due to the uncertainty regarding the future market.
Welded pipe prices decline in China
Welded pipe prices in eastern China have dropped somewhat, both due to lower costs and poor demand. In the short term, the welded pipe market in eastern China is expected to follow a weak trend.
The welded pipe market in southern China has also declined a little. Inventory is at above normal levels among both suppliers and traders. It is thought that in the coming week it will still be difficult to see a change in the declining trend of the mainstream steel market. Most traders anticipate a bearish welded pipe market in southern China in the short term.
In the northern market, welded pipe prices have decreased by about RMB 50/mt ($7.7/mt) week on week. In line with the decline of raw material prices, cost support has weakened. On the demand side, buying activity continues to be on the low side. In the current uncertain steel market environment, traders are still trying to sell off their inventories at negotiated prices in order to reduce risks from high stocks..