Local Chinese steel pipe market moves up sharply 

Local Chinese steel pipe prices have indicated strong increases during the past week. 

As of August 10, 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 $735/mt (RMB 5,067/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $731/mt (RMB 5,033/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 $660/mt (RMB 4,550/mt) and $653/mt (RMB 4,497/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.72)

The Chinese domestic seamless pipe market has moved up sharply in the past seven days mainly due to higher billet prices, but also supported by low inventories in the market. Overall trading activity in the seamless pipe market has remained weak. It is believed that in the coming week domestic seamless pipe prices may just indicate minor fluctuations given the weakness of demand.

The local Chinese welded pipe market has also seen strong upward movement in the past week, principally due to increases in prices of steel strip and raw materials. Welded pipe inventories are also at low levels. Trading activity for welded pipe is sluggish and buyers prefer to wait and see amid the current sharp uptrend. As for the week ahead, it is thought that domestic welded pipe prices may fluctuate on an upward trend.

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

 $1 = RMB 6.66