Demand still lackluster in local Chinese steel pipe market

The local Chinese steel pipe market has mostly moved on a stable trend in terms of seamless pipe prices, while following an upward trend for welded pipe prices.  

 

As of August 13, 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 $482/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $492/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 $391/mt and $394/mt respectively. All the above prices include 17 percent VAT. 

 

The local Chinese seamless pipe market has mainly moved on a sideways trend in the past seven days, while trading activity has remained weak. Despite increases in billet prices, traders are keeping their seamless pipe prices stable for now due to weak demand. Inventories are at low levels, while traders are willing to offer small discounts in order to attract deals. As for the coming week, it is believed that the market trend will be mostly stable with some slight downticks possible. 

 

The Chinese domestic welded pipe market has indicated a slight uptrend in the past week. While overall trading activity is still at low levels, rises in upstream steel strip prices have provided support for welded pipe prices. Demand appears unlikely to improve. For the week ahead, domestic welded pipe prices may resume a stable trend. 

 

 

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

$1 = RMB 6.42