Local Chinese steel pipe market moves on rising trend despite weak activity

Thursday, 01 December 2016 17:08:07 (GMT+3)   |   Shanghai
       

The local Chinese steel pipe market has moved on an upward trend during the past week.
 
As of December 1, 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 $640/mt (RMB 4333/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $635/mt (RMB 4300/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 $505/mt (RMB 3417/mt) and $504/mt (RMB 3413/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.77)
 
The local Chinese seamless pipe market has followed a rising trend in the past seven days against the backdrop of strong increases in domestic billet prices. Overall trading activity has remained at low levels, while supply is also on the low side. Producers have raised their seamless steel prices and traders have followed their example. It is believed that the market may fluctuate on an upward trend in the week ahead. 

In the past week, the Chinese domestic welded pipe market first moved down and then started to move back up. Upstream steel strip prices have been impacted by the significant fluctuations in futures prices, causing welded pipe traders to hesitate to purchase. In addition, colder weather conditions have contributed to the slackness of trading activity in the market. It is thought that further room still exists for the upward movement of domestic welded pipe prices in the coming week.

Product Name Spec. Category City Steel Plant/Origin Price (RMB/mt) Price ($/mt) Weekly Change (RMB/mt)
Seamless pipe Φ108 mm x 4.5 mm 20# (GB/T8162-1999) Shanghai Wuxi 4,150 602 ↑100
Guangzhou Shandong 4,550 660 ↑250
Beijing Angang 4,300 624 ↑100
Average price - 4,333 629 ↑150
Φ219 mm x 6 mm 20# (GB/T8163-1999) Shanghai Zhenda 4,050 588 ↑100
Guangzhou Angang 4,600 668 ↑200
Beijing Shandong 4,250 617 ↑100
Average price - 4,300 624 ↑133
Welded pipe Φ48 mm x 3.25 mm Q195-Q215 Shanghai Tangshan 3,460 502 ↑190
Guangzhou Guangzhou 3,550 515 ↑220
Beijing Jinghua 3,240 470 ↑170
Average price - 3,417 496 ↑194
Ф114 mm x 3.75 mm Q215-Q235 Shanghai Huaqi 3,420 496 ↑190
Guangzhou Guangzhou 3,600 522 ↑220
Beijing Zengzhou 3,220 467 ↑170
Averageprice - 3,414 496 ↑194
 
17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.89




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