The Chinese domestic steel pipe market has mostly moved sideways during the past week, though some slight decreases in prices have also been observed.
As of February 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 $688/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $726/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 $582/mt and $589/mt respectively. All the above prices include 17 percent VAT.
Chinese domestic seamless pipe market has followed a stable trend during the past seven days. Influenced by bad weather, demand for seamless pipes from the construction sector has remained weak. Meanwhile, with banks tightening the credit supply for the housing sector, this will likely affect the property market in the future. However, traders state that the market for construction materials will not be impacted for a while. Traders in the local seamless pipe market are maintaining a wait-and-see stance and are keeping their inventories at low levels. The domestic seamless pipe market is expected to remain stable in the coming week, while prices may indicate slight declines subsequently.
The local Chinese welded pipe market has mainly moved on a stable trend in the past week, though there have been slight downticks in prices of certain products. Traders indicate that downstream demand is returning to normal, with the trading volume stronger than before. Nevertheless, some traders have reduced their prices slightly in order to attract customers. It is thought that China's domestic welded pipe market may be characterized by a stable trend in the week ahead.