Trading activity still at low levels in local Chinese steel pipe market

The local Chinese steel pipe market has mostly followed a slight uptrend during the past week.
 
As of September 1, 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 $524/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $540/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 $463/mt and $470/mt respectively. All the above prices include 17 percent VAT.
 
Prices in the local Chinese seamless pipe market have indicated either stable movement or slight upticks in the past seven days. Overall trading activity has remained sluggish. Inventories in the market are still at low levels, while traders are maintaining a wait-and-see stance and placing their hopes in the traditional peak sales season in September and October. The minor rises seen in billet prices have contributed to the slight increases in seamless pipe prices. As for the coming week, it is believed that domestic seamless pipe prices may again move sideways or slightly upward.

The Chinese domestic welded pipe market has mainly followed a slight uptrend during the past week on the back of some shortages of inventory. Overall trading activity has remained sluggish. There have also been some minor price downticks in the past week for a few welded pipe products caused by decreases in steel strip prices. In the week ahead, just slight fluctuations in domestic welded pipe prices are anticipated.

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.64