Slack activity in local Chinese steel pipe market

The local Chinese steel pipe market has moved on a rising trend during the past seven days.   

 

As of April 21, 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 $505/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $523/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 $494/mt and $505/mt respectively. All the above prices include 17 percent VAT.

 

The Chinese domestic seamless pipe market has followed an upward trend in the past week, though overall trading activity has remained slack. The upstream local billet market has been characterized by tight supply and high prices, contributing to the rising trend of seamless pipe prices. Traders in the seamless pipe market are adopting a cautious approach amid the higher prices. As for the coming week, it is believed that domestic seamless pipe price will continue their rising trend. 

Local Chinese welded pipe prices have risen sharply in the past week, while overall trading activity is weak, having slackened amid the uptrend of prices. Rising steel strip prices have been the main factor contributing to higher welded pipe prices. Market inventory of welded pipe is at low levels as traders have been mostly maintaining a wait-and-see stance. As for the week ahead, it is thought that prices may increase further though by smaller margins.

 

  

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

$1 = RMB 6.47