The Chinese domestic steel pipe market has seen minor price decreases for seamless pipes in the past week, while local welded pipe prices have been mostly stable but with some slight downticks also observed.
As of November 20, 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 $567/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $599/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 $504/mt and $511/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has seen slight decreases in prices during the past week. Billet prices have softened in the past seven days, and so seamless pipe traders have reduced their quotations in order to attract more sales. The bigger traders have been recording better trading activity than their smaller counterparts, but overall trading activity is still slack due to the cold weather. Market inventories are at low levels. For the coming week, it is believed that the seamless pipe market may again see some minor price decreases.
Chinese domestic welded pipe prices have been mainly stable in the past week, but with slight decreases also seen. Hopes for increased trading activity after the Asia-Pacific Economic Cooperation (APEC) meeting which recently concluded in Beijing have been disappointed, with demand remaining sluggish. Traders are not willing to build up their stocks for now and most of them hold a negative view of the future prospects for the market. It is believed that the welded pipe market will be characterized by a slightly weak trend in the coming week.