In the past seven days, the Chinese domestic steel pipe market has moved sideways in terms of seamless pipe prices, while welded pipe prices have softened.
As of January 8, 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 $565/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $597/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 $473/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has followed a stable trend during the first week of 2015. Overall trading activity is still slack, while billet prices have only seen slight fluctuations, contributing to the stable trend of seamless pipe prices. Market prices are close to cost level and profit margins are very small and so most traders and mills are reluctant to decrease their prices. Domestic seamless pipe prices will likely remain stable in the coming week, though with some slight downticks also possible.
The Chinese domestic welded pipe market has moved on a soft trend in the past week. Upstream steel strip prices weakened both before and after the New Year holiday, while overall trading activity has remained very slow. In this context, traders have reduced prices in order to attract demand. However, it is believed upstream steel strip prices may rebound in the next few weeks and so domestic welded pipe prices may resume a stable movement in the week ahead.