Latest situation in local Chinese steel pipe market

In the past week, the local Chinese steel pipe market has seen downward movement in welded pipe prices, while seamless pipe prices are more or less at the same levels as one week ago.

 

As of March 9, 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 $670/mt (RMB 4,633/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $673/mt (RMB 4,650/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 $557/mt (RMB 3,847/mt) and $559/mt (RMB 3,860/mt) respectively. All the above prices include 17 percent VAT.

In the past seven days, the local Chinese seamless pipe market first moved up before then moving back down due to the influence of lower billet prices, with prices of seamless pipes now more or less at the same levels as one week earlier. Overall trading activity is at normal levels. Traders are mostly maintaining a wait-and-see stance in terms of their purchases from producers, while they are willing to offer discounts in order to conclude sales. As for the coming week, it is believed that the domestic seamless pipe market may continue its soft movement. 

Chinese domestic welded pipe prices have mostly declined during the past week, while overall trading activity has remained weak given the current soft trend of market prices and also due to lower prices of steel strip and raw materials. The current decreases in welded pipe prices are considered to be a normal correction following previous excessive rises in prices. It is believed that domestic welded pipe prices will trend sideways in the coming week, with support from reduced output. 

 

 

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

 

$1 = RMB 6.91