Local Chinese steel pipe market characterized by weak activity

The local Chinese steel pipe market has moved on an upward trend during the past week.

As of November 3, 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 $566/mt (RMB 3,833/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $574/mt (RMB 3,883/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 $461/mt (RMB 3,120/mt) and $454/mt (RMB 3,077/mt) respectively. All the above prices include 17 percent VAT. 

Even though trading activity has remained at low levels, the Chinese domestic seamless pipe market has indicated upward movement in past seven days, mainly on the back of higher billet prices. Furthermore, environmental protection measures have restricted output and supply volumes of seamless pipe. Traders think that, without support from the demand side, domestic seamless pipe prices may soften in the coming period.

The local Chinese welded pipe market has mostly followed a rising trend in the past week, despite the weakness of trading activity. In the week in question, upstream steel strip prices initially softened, but then moved on an upward trend. With the approach of the cold weather, trading activity is unlikely to change for the better. As for the coming week, it is believed that the local welded pipe market may see stable movement. 

 

 

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

$1 = RMB 6.76