The Chinese domestic steel pipe market has mostly followed a stable trend in the past week, though slight downticks have been seen in some cases for seamless pipe prices.
As of November 6, 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 $575/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $608/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 $509/mt and $519/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has been mainly stable in the past seven days, though with slight decreases also seen. In addition, billet prices have decreased amid softer iron ore prices. Most traders are keeping their quoted prices stable for now as price adjustments are unlikely to result in any improvement in the low trading volume. However, some traders have chosen to slightly lower their prices due to pressure from lack of funds. Inventory levels are low, which provides some support for seamless pipe prices. It is believed that the stable trend will likely continue in the coming week.
The local Chinese welded pipe market has indicated sideways movement in the past week. Some production cuts due to pollution concerns as well as rises in steel strip prices are among the positive factors affecting the welded pipe market, though, on the other hand, trading activity in the market has remained sluggish. Meanwhile, supply in the market is on the low side. The domestic welded pipe market is expected to remain on its stable trend in the week ahead.