The Chinese domestic steel pipe market has seen slight downticks in prices of both seamless and welded pipes in the past week.
As of September 18, 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 $605/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $632/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 $519/mt and $527/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has moved down slightly during the past week, with the decreasing margin smaller than in previous weeks. The overall trading volume is still low. The trend of billet prices has been relatively stable this week, and this has contributed to the slowing of the downward movement of seamless pipe prices. Both traders and downstream users are still downbeat on the future prospects for the seamless pipe market. As for the coming week, the slightly soft trend in the Chinese seamless pipe market is expected to continue.
The local Chinese welded pipe market has seen some slight decreases in prices during the past week, though many prices have also remained stable. Domestic steel strip prices rebounded last weekend, contributing to the greater stability of local welded pipe prices. Overall trading activity still fails to impress, while the demand side may become weaker soon as the weather gets colder. Market participants still hold a negative view of the prospects for the market. In the coming week, the domestic welded pipe market is expected to be mostly stable, but also with some slight downticks.