Demand still fails to pick up in Chinese steel pipe market

As of February 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 $839/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $873/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 $704/mt and $708/mt respectively. All the above prices include 17 percent VAT.
 
The seamless pipe market has been mostly stable this week, though slight decreases have been seen in some cities. The trading volume has been limited. Some seamless mills will issue prices during the next few weeks. In the meantime, traders may maintain a wait-and-see stance. It is thought that, the market trend will not change much in the short term.
 
The welded pipe market has softened slightly in the past week amid a fluctuating trend, influenced by the weakening of prices of upstream materials. Many producers have reduced their quoted prices. The trading volume has continued to be quite low, though more inquiries are heard in the market. It is expected that the Chinese welded market will continue to fluctuate on a soft trend in the short term.