Local Chinese steel pipe market continues to rise despite weak activity

The local Chinese steel pipe market has followed a rising trend during the past week.

 

As of December 15. 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 $657/mt (RMB 4.450/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $657/mt (RMB 4,450/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 $552/mt (RMB 3,740/mt) and $555/mt (RMB 3,760/mt) respectively. All the above prices include 17 percent VAT. 

 

The Chinese domestic seamless pipe market has continued its upward trend in the past seven days, mainly due to the rises in prices of billet and raw materials, though the price increases have been lower than those recorded by prices of upstream materials due to the slackness of trading activity. With the end of the year approaching, traders may be seeking to boost sales and bring in cash in the coming period. As for the week ahead, it is believed that further slight increases may be seen in domestic seamless pipe prices. 

 

The local Chinese welded pipe market has continued to move on a strong uptrend during the past week, though trading activity has remained sluggish. Producers have had to increase their prices due to high costs and traders have had no choice but to follow suit even though demand remains weak. Most traders are keeping their inventories at low levels. As for the coming week, it is believed that the rising trend of prices may slow down due to the approach of the end of the year. 

 

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

$1 = RMB 6.95