The Chinese domestic steel pipe market has continued to follow a stable trend during the past week in terms of seamless pipe prices, while indicating a rebound for welded pipe prices.
As of March 26, 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 $546/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $578/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 $438/mt and $445/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has continued its sideways trend during the past seven days. Trading activity has been improving gradually but has not yet regained normal levels. Amid strict environmental protection measures, some upstream billet producers are being investigated by the government, resulting in decreases in supply volumes of billet. For the moment, however, seamless pipe traders are still keeping their prices stable in order to attract business. For the coming week, it is believed that domestic seamless pipe prices may move on an upward trend due to higher costs.
The local Chinese welded pipe market has seen a rebound in prices during the past week. The increases in steel strip prices have provided support for the rebound of welded pipe prices. Low inventory levels have also provided support for welded pipe prices. Trading activity has improved only slightly, not as much as expected, and remains on the sluggish side. For the coming week, it is thought that local welded pipe prices may indicate a slight increase.