Local Chinese steel pipe market moves in upward direction  

The local Chinese steel pipe market has followed an upward trend in the past week.

As of August 3, 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 $699/mt (RMB 4,817/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $689/mt (RMB 4,750/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 $616/mt (RMB 4,243/mt) and $608/mt (RMB 4,190/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.72)

The local Chinese seamless pipe market has moved on a rising trend in the past seven days with the support of billet prices, while trading activity for seamless pipes has remained slack. It is believed seamless pipe prices in China may just indicate minor fluctuations in the week ahead.

The Chinese domestic welded pipe market has moved upward in the past week on the back of higher upstream costs, while demand has remained weak. Approaching the end of July, traders were still willing to offer some discounts in order to boost their sales. As for the coming week, it is believed that local welded pipe prices may fluctuate on a slightly upward trend with the support of steel strip prices.

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

$1 = RMB 6.72