Local Chinese steel pipe market moves sideways

The local Chinese steel pipe market has moved on a stable trend during the past week.

 

As of January 26, 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 $628/mt (RMB 4,316/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $636/mt (RMB 4,367/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 $526/mt (RMB 3,617/mt) and $526/mt (RMB 3,613/mt) respectively. All the above prices include 17 percent VAT.

 

The Chinese domestic seamless pipe market has followed a sideways trend in the past seven days, while trading activity is almost at a standstill as the Chinese New Year holiday period is about to begin. Both producers and traders are mostly just doing accounting work or have already closed ahead of the holiday. As for the coming week, it is believed that the stable trend of domestic seamless pipe prices will continue during the holiday and may also be prolonged during the first few weeks after the holiday. 

 

The local Chinese welded pipe market has indicated a stable trend during the past week. The downstream construction sector is generally already on holiday and so demand is very low. Producers have mostly closed ahead of the holiday. Traders’ inventories are at low levels as the holiday begins. It is expected that domestic welded pipe prices will move sideways both during and immediately after the holiday, while time will be required for demand to recover.

 

 

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

 

$1 = RMB 6.87