Local Chinese steel pipe market mostly stable with some slight downticks also

The local Chinese steel pipe market has mostly followed a stable trend during the past week, though with some slight downticks also seen. 

As of January 10, 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 $692/mt (RMB 4,700/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $712/mt (RMB 4,833/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 $624/mt (RMB 4,240/mt) and $618/mt (RMB 4,193/mt) respectively. All the above prices include 16 percent VAT.

Overall trading activity has remained at low levels in the past seven days in the local Chinese seamless pipe market where prices have been mostly stable but with some minor decreases also observed. Demand has not changed much since the beginning of the year since downstream buyers think prices are still at high levels. However, it is believed that the downstream side may start to increase its purchases. As for the coming week, it is believed that domestic seamless pipe prices may move sideways.

Chinese domestic welded pipe prices have mostly moved sideways in the past week, though with some small decreases in prices also seen due to the slight softening of steel strip prices. Most traders have been unwilling to reduce their prices given the current slackness of trading activity, though some improvement in demand has been seen lately as some downstream buyers have started to build up stocks ahead of the Chinese New Year holiday. As for the week ahead, it is believed that Chinese domestic welded pipe prices may remain mainly stable, though with some slight decreases also possible.

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

$1 = RMB 6.79