Prices in the Chinese domestic steel pipe market have either moved on a stable trend or softened slightly in the past week.
As of August 7, 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 $632/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $659/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 $545/mt and $552/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has been characterized by stable or slightly soft prices during the past week, while overall trading activity has remained slack. Mills continue to produce significant output volumes and so supplies remain at high levels during the off-season. However, after the slight downticks already seen, the market may indicate a stable trend in the coming week.
The local Chinese welded pipe market has mostly followed a stable trend in the past seven days, though with slight decreases also seen in certain areas, while activity has been slack also due to the influence of the hot weather. Market sentiment is still negative and most traders are trying to get rid of inventories. Meanwhile, upstream steel strip prices have softened slightly. Some minor downticks may be witnessed in the Chinese welded pipe market in the week ahead.