As of April 18, 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 $722/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $754/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 $638/mt and $641/mt. All the above prices include 17 percent VAT.
Since billet prices rebounded slightly during last weekend, China's domestic seamless pipe market saw greater stability during the past week following previous decreases, with some traders now more inclined to buy because they believe prices are already at bottom levels. Nevertheless, demand is still on the slow side. In the past week, some issues which made it more difficult for companies in the building materials sector to obtain credit placed pressure on the seamless pipe segment also. Overall, it is thought that China's seamless pipe market may trend sideways in the coming week.
China's domestic welded pipe market has moved down slightly during the past week, with producers decreasing their quoted prices by around RMB 20/mt amid lower prices of steel strip. Market sentiment is negative and most downstream demand is in wait-and-see mode, causing the trade volume to weaken. It is believed that the weak trend in the local Chinese welded pipe market will continue in the coming seven days.