Demand still lackluster in local Chinese steel pipe market

The local Chinese steel pipe market has been characterized by diverse price movements in the past week.

As of August 17, 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 $772/mt (RMB 5,150/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $767/mt (RMB 5,117/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 $689/mt (RMB 4,597/mt) and $681/mt (RMB 4,543/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.67)

The local Chinese seamless pipe market has seen both sideways and upward movement of prices in the past week, While billet prices have mostly moved downwards. the weak demand for seamless pipes and the fact that traders are mostly holding on to their inventories means that the lower billet prices have had a limited impact on seamless pipe prices. It is believed that domestic seamless pipe prices may fluctuate at current high price levels in the coming week, with slight downticks in prices possible.

The Chinese domestic welded pipe market has fluctuated during the past week, first increasing, then declining and finally rebounding slightly. These price movements have mainly been due to fluctuations in upstream steel strip prices. Trading activity for welded pipes has remained weak, while recent reductions in supply volumes due to environmental measures have provided support for welded pipe prices. It is believed that domestic welded pipe prices may follow a stable trend in the coming week, with some increases also possible.  

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

$1 = RMB 6.68