Local Chinese steel pipe market moves up with support of higher costs

Thursday, 29 June 2017 17:23:28 (GMT+3)   |   Shanghai
       

The local Chinese steel pipe market has indicated a strong upward trend during the past week.

As of June 29, 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 $656/mt (RMB 4,450/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $666/mt (RMB 4,517/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 $587/mt (RMB 3,983/mt) and $580/mt (RMB 3,930/mt) respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has fluctuated on an upward trend during the past seven days with the support of higher prices of billet and other raw materials. However, trading activity in the market remains weak and it is difficult for downstream demand to improve given the current bad weather conditions. As for the coming week, it is believed that domestic seamless pipe prices may just indicate minor fluctuations against the backdrop of the ongoing weakness of demand.

The local Chinese welded pipe market has indicated strong increases in prices during the past week on the back of higher steel strip prices in the futures and spot markets. Overall trading activity remains weak given the relatively high price levels and the current offseason for business. Traders are reluctant to build up their stocks at present. As for the week ahead, domestic welded pipe prices may continue to move up with the support of higher upstream prices.

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

4,400

649

↑150

Guangzhou

Shandong

4,600

678

↑100

Beijing

Angang

4,350

642

↑200

Average price

-

4,450

656

↑150

Φ219 mm x 6 mm

20# (GB/T8163-1999)

Shanghai

Zhenda

4,500

664

↑100

Guangzhou

Angang

4,700

693

↑100

Beijing

Shandong

4,350

642

↑50

Average price

-

4,517

666

↑83

Welded pipe

Φ48 mm x 3.25 mm

Q195-Q215

Shanghai

Tangshan

4,030

594

↑270

Guangzhou

Guangzhou

4,050

597

↑150

Beijing

Jinghua

3,870

571

↑230

Average price

-

3,983

588

↑217

Ф114 mm x 3.75 mm

Q215-Q235

Shanghai

Huaqi

3,940

581

↑220

Guangzhou

Guangzhou

4,050

597

↑150

Beijing

Zengzhou

3,800

560

↑230

Average price

-

3,930

580

↑200

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

$1 = RMB 6.78


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