Local Chinese steel pipe market continues to see slack demand

The local Chinese steel pipe market has followed a mostly stable trend in the past week, but with some minor upward or downward price movements also seen.  

As of January 21 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 $404/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $422/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 $341/mt and $346/mt respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has mostly followed a stable trend in the past seven days, with slight downticks seen in prices of certain products. In spite of the minor rises observed in upstream billet prices, low trading activity and the eagerness of traders to sell off inventories have contributed to the stable or slightly downward movement of seamless pipe prices in the past week. As for the coming week, it is believed that domestic seamless pipe prices may continue their mostly stable trend.

The Chinese domestic welded pipe market has indicated some slight upticks during the past week, supported by increases in steel strip prices, though demand has remained sluggish. Activity in the market is expected to remain slack in the coming period due to the approach of the Chinese New Year holiday. As for the week ahead, it is believed that domestic welded pipe prices in China will be mainly stable, with some minor fluctuations also possible.

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

$1 = RMB 6.58