Demand still weak in local Chinese steel pipe market

The local Chinese steel pipe market has moved on a downward trend in the past week.   

As of June 23, 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 $440/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $464/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 $382/mt and $386/mt respectively. All the above prices include 17 percent VAT. 

The Chinese domestic seamless pipe market has indicated a downward trend during the past seven days amid the ongoing weakness of trading activity. Downstream demand has shrunk significantly due to the current offseason. Most traders have reduced prices in order to attract business, though with limited success. As for the coming week, the market is expected to continue its soft trend. 

The local Chinese welded pipe market has followed a slight downtrend in the past week against the backdrop of weak activity. Upstream steel strip have softened, while welded pipe producers have reduced their quotations. As for the coming week, it is believed that local welded pipe prices may continue to trend down slightly.

 

 

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

 

$1 = RMB 6.58