Sluggish trading activity in local Chinese steel pipe market

The local Chinese steel pipe market has seen both sideways and slightly upward movements in prices during the past week.

 

As of January 12, 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 $621/mt (RMB 4,317/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $628/mt (RMB 4,367/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 $518/mt (RMB 3,600/mt) and $520/mt (RMB 3,613/mt) respectively. All the above prices include 17 percent VAT. 

 

The local Chinese seamless pipe market has mostly followed a stable trend in the past seven days, while overall trading activity has been at very low levels due to the off-season and also given the approach of the Chinese New Year holiday. On the upstream side, billet producers have reduced their quotations slightly. As for the week ahead, the domestic seamless pipe market is expected to continue its sideways movement. 

 

The Chinese domestic welded pipe market has moved on a slight uptrend in the past week due to increases in steel strip prices, even though trading activity in the market is slack. However, traders may offer discounts during negotiations for deals. As for the coming week, it is believed that domestic welded pipe prices may indicate a stable trend, especially with some traders likely to start exiting the market ahead of the holiday. 

 

 

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

 

$1 = RMB 6.91