Prices still under pressure in local Chinese steel pipe market

The local Chinese steel pipe market has moved on downward trend in the past seven days, with larger decreases seen for welded pipe prices. 

As of June 25, 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 $530/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $546/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 $409/mt and $413/mt respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has followed a slight downtrend the during past week, while overall trading activity has remained low. Decreases in billet prices have also contributed to the soft price trend. Traders hold a negative view of prospects for the future market trend, while it is believed that room exists for the further downward movement of prices. As for the coming week, it is thought that domestic seamless pipe prices will continue to indicate slight decreases.
 
Local Chinese welded pipe prices have decreased by relatively large margins compared to seamless pipe prices during the past week. Trading activity is still slack, while upstream steel strip prices have also softened. Some traders have already started to incur losses. It is thought that the downward trend in domestic welded pipe prices will also continue in the week ahead.

$1 = RMB 6.21