Local Chinese steel pipe market moves upward despite sluggish demand

The local Chinese steel pipe market has moved on an upward trend in the past week.
 
As of June 22, 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 $629/mt (RMB 4,300/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $648/mt (RMB 4,433/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 $551/mt (RMB 3,767/mt) and $545/mt (RMB 3,730/mt) respectively. All the above prices include 17 percent VAT.
 
Supported by higher billet prices, the Chinese domestic seamless pipe market has mostly moved on an upward trend in the past seven days, with relatively large price increases seen in some regions. Since overall trading activity remains weak, some negotiation on prices is still possible. It is believed that domestic seamless pipe prices may continue their rising trend in the coming week with the support of higher raw material prices.
 
The local Chinese welded pipe market has moved on a strong upward trend in the past week with the support of rising steel strip prices, though overall trading activity has remained at low levels. It is thought that domestic welded pipe prices may just fluctuate at current levels in the coming week, following the strong increases seen in the past week.

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.84