Local Chinese steel pipe market characterized by weak activity

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

 

As of May 4, 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 $610/mt (RMB 4,200/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $629/mt (RMB 4,333/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 $515/mt (RMB 3,550/mt) and $513/mt (RMB 3,537/mt) respectively. All the above prices include 17 percent VAT. 

Despite the ongoing weakness of demand, Chinese domestic seamless pipe prices have mostly increased during the past seven days with support from higher billet prices. However, traders are still seeking to sell and so prices of certain products either moved sideways or softened slightly. As for the coming week, it is believed that the local seamless pipe market will just fluctuate at current price levels as support from the demand side is quite limited.

 

The local Chinese welded pipe market has moved up in the past week amid increased prices of steel strip and other raw materials. Demand has remained weak and sentiment among traders is negative. Most traders are unwilling to build up large stocks. As for the week ahead, it is thought that domestic welded pipe prices may fluctuate on a slightly soft trend. 

 

 

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

 

$1 = RMB 6.89