Local Chinese steel pipe market mostly moves in upward direction

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

As of July 13, 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 $666/mt (RMB 4,517/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $669/mt (RMB 4,533/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 $598/mt (RMB 4,053/mt) and $590/mt (RMB 4,003/mt) respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has mainly moved on a rising trend with the support of increased billet prices in the past week, though overall trading activity has remained sluggish due to the relatively high price levels in the market. Downstream demand also remains slack due to the hot weather in China. It is thought that domestic seamless pipe prices may just indicate slight fluctuations during the coming week after the increases recorded in the past two weeks.

The Chinese domestic welded pipe market has increased in the past week on the back of higher upstream costs, though trading activity is still at low levels. As for the week ahead, it is believed that domestic welded pipe prices may resume a stable trend after recent increases.

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

$1 = RMB 6.78