No demand improvement in local Chinese steel pipe market

The local Chinese steel pipe market has followed a soft trend in the past seven days.   

 

As of June 2 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 $469/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $492/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 $383/mt and $384/mt respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has moved on a declining trend during the past week, while trading activity has remained slack. Upstream billet prices have softened slightly, impacting the trend of seamless pipe prices. Traders are under pressure to conclude seamless pipe sales. The local seamless pipe market price is expected to follow a slight downtrend in the coming week.

The local Chinese welded pipe market has decreased slightly during the past week, while trading activity is still at low levels. The rainy weather has negatively impacted demand and traders have reduced their quotations slightly in order to attract business. It is believed that domestic welded pipe prices will be mostly stable in the week ahead but with some downticks also possible.

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

 

$1 = RMB 6.58