Slow demand has continued to prevail in the Chinese steel pipe market - both for welded and seamless pipes - in the past week.
As of April 3, 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 $666/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $707/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 $575/mt and $580/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has moved on a downward trend during the past week. Overall trading activity is still slack. Market prices have been influenced by reductions in pipe producers' ex-works prices, while the slight reduction in market prices has not attracted any increase in demand. Most traders are somewhat pessimistic and have been purchasing only in line with their needs. The market is expected to remain on a soft trend in the coming week.
The Chinese domestic welded pipe market has been characterized by diverse price movements in the past seven days, while the overall trading volume is still not great. Certain traders in the northern welded pipe market have raised their prices slightly on the back of higher billet prices in the north, while some traders in the south have slightly decreased their prices due to the low trade volume. Other traders have preferred to keep their prices stable and to wait and see. Downstream demand has still not improved and so there is limited room for upticks in prices. For the coming week, the welded pipe market in China will mostly follow a stable trend or indicate minor fluctuations in prices.