As of July 8, 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 $912/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $920/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 both stand at $764/mt,. All the above prices include 17 percent VAT.
Weakness in eastern China seamless pipe market amid lower semis prices
The seamless pipe market in eastern China has continued to indicate a slight decline in the past week, while a general wait-and-see mood prevails in the market. With the weakness in semi-finished steel prices in Jiangsu, traders are not optimistic on the prospects for the seamless pipe price trend. It is thought that in the coming week the eastern Chinese seamless pipe market may see a small drop in prices.
Seamless pipe prices in the southern Chinese market have remained stable in the past week. Downward room for seamless pipe prices still exists, given the market situation and the trend of raw material prices. The market is expected to remain bearish in the short term.
In the past week, the northern Chinese seamless pipe market has seen small declines in some areas, but has remained stable overall. End-users are maintaining a wait-and-see stance and the trading volume has been on the low side. Digestion of inventories is slow, while traders are focused on keeping inventories at low levels. Downward fluctuations are expected to be seen in the market in the coming week.
Chinese welded pipe traders keep stocks at low levels
The welded pipe market in eastern China has continued its weak trend in the past week. With the influence of declines in the prices of pipe producers in the north, the market prices of traders in eastern China have indicated small decreases. Meanwhile, in the off season for sales, traders in eastern China are maintaining their inventories at low levels. It is thought that the welded pipe market in eastern China will continue to be characterized by weakness in the short term.
The welded pipe market in northern China has also witnessed downward price adjustments. In the traditional low season for sales, traders are adopting the strategy of selling off as much material as possible and are keep inventories at reduced levels. Besides, the wet weather conditions could cause rust in large welded pipe stocks. The northern Chinese welded pipe market is expected to maintain its weak trend in the coming period.
A soft price trend has also been seen in the southern Chinese welded market, amid a sluggish trading volume. Heavy rains have also contributed to the poor transaction volumes. With upstream prices indicating weakness, further price decreases are expected for welded pipe. In the short term, the southern Chinese welded pipe market is likely to continue its falling trend.