Local Chinese steel pipe market continues to see poor activity

The local Chinese steel pipe market has indicated both stable movement and slight decreases in prices in the past seven days.  

 

As of January 14 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 $406/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $424/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 $339/mt and $340/mt respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has mostly trended sideways in the past week, though with slight decreases in prices also seen. Meanwhile, downstream demand is weak and is unlikely to improve as the Chinese New Year holiday approaches. After the previous week’s upticks in prices, overall trading activity has decreased significantly, with some traders choosing to reduce their prices slightly in order to attract deals. As for the coming week, it is believed that the local seamless pipe market will continue its mostly stable trend, with minor downticks also possible. 

 

The Chinese domestic welded pipe market has seen slight decreases in prices of most products in the past week. Trading activity has slackened after the price increases seen in the previous week. Meanwhile, demand from the construction sector has declined amid cold weather conditions and the approach of the Chinese New Year holiday. It is believed that further slight decreases in prices may be seen in the coming week if trading activity remains sluggish.

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

$1 = RMB 6.59