Weak activity in Chinese domestic steel pipe market

The local Chinese steel pipe market has mostly moved on an upward trend during the past week.

 

As of December 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 $647/mt (RMB 4383/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $647/mt (RMB 4383/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 $529/mt (RMB 3580/mt) and $524/mt (RMB 3550/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.77)

 

The local Chinese seamless pipe market has mostly followed an upward trend in the past week, though some product prices have remained stable. Overall trading activity in the market is still sluggish. High costs have been the main reason for the increases in seamless pipe prices. Meanwhile, traders have been keeping their inventories at low levels. It is believed that local seamless pipe prices will continue to move up in the coming week. 

 

The Chinese domestic welded pipe market has fluctuated on a rising trend in the past seven days against the background of increases in spot and futures prices of raw materials. Traders are complaining about the high prices and the weakness of trading activity, and are generally keeping inventories at low levels. It is expected that domestic welded pipe prices will continue to increase in the week ahead. 

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.88