Local Chinese steel pipe market mostly moves up slightly

The local Chinese steel pipe market has to a large extent moved on a slight uptrend in the past week, though with some stable movement also seen.

 

As of May 25, 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 $611/mt (RMB 4,200/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $629/mt (RMB 4,331/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 $534/mt (RMB 3,670/mt) and $529/mt (RMB 3,633/mt) respectively. All the above prices include 17 percent VAT. 

In the past week, the Chinese domestic seamless pipe market has indicated sideways movement for many products, though with prices of other products edging up slightly. Increases in billet prices have provided some support for the upward movement of seamless pipe prices, though the ongoing slackness of trading activity has limited the price increase margins. As for the coming week, it is believed that domestic seamless pipe prices will mostly remain stable, with some minor increases also possible.  

The local Chinese welded pipe market has mainly followed an upward trend in the past week, supported by increases in prices of steel strip and other raw materials in both the spot and futures markets. Trading activity is at normal levels, but traders are still somewhat cautious and are keeping their inventories at low levels. As for the week ahead, it is expected that domestic welded pipe prices may move up slightly. 

 

 

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

 

$1 = RMB 6.87