Weaker demand observed in local Chinese steel pipe market

The local Chinese steel pipe market has followed a mostly stable trend in the past seven days, with some slight decreases observed also. 

As of November 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 $435/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $438/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 $335/mt and $338/mt respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has mainly moved on a stable trend in the past weeks, though with slight decreases seen in prices of certain products. Overall trading activity is still weak. With the weather getting colder, the volume of demand for seamless pipe has declined. Traders state that, after the decrease in billet prices over the past few weeks, further room still exists for the downward movement of domestic seamless pipe prices. Traders may reduce their seamless pipe prices slightly in the coming week.

The local Chinese welded pipe market has followed a mostly stable trend in the past week. The colder weather has contributed to the ongoing weakness of trading activity, with demand from construction sites being negatively influenced. However, with producers reducing their production volumes, market prices have mainly moved sideways. As for the coming week, it is believed that domestic welded pipe prices may just indicate slight fluctuations.

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

$1 = RMB 6.39