Weak activity in local Chinese steel pipe market

The local Chinese steel pipe market has moved on a stable trend during the past week.

 

As of July 14 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 $448/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $471/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 $406/mt and $413/mt respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.4)

 

The Chinese domestic seamless pipe market has moved sideways during the past seven days, while overall trading activity has remained weak, preventing prices from following the upward trend of billet prices. Hot and rainy weather conditions are still the main cause of low demand. As for the coming week, it is believed that domestic seamless pipe prices may soften slightly due to weak transaction activity. 

 

Prices in the local welded pipe market are unchanged compared to one week ago. At the beginning of the past week, prices rose slightly amid higher steel strip prices, but traders have had to reduce their prices due to the weakness of demand. Traders’ profitability is currently at low levels. For the coming week, it is believed that domestic welded pipe prices may move up slightly. 

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

$1 = RMB 6.64