Local Chinese steel pipe market receives support from upstream costs

The local Chinese steel pipe market has indicated some upward movements in prices in the past week.  

 

As of January 7, 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 $409/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $427/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 $341/mt and $342/mt respectively. All the above prices include 17 percent VAT. 

 

The local Chinese seamless pipe market has mostly been stable in the past week, though with slight upticks in prices of certain products also observed. Downstream demand is still on the weak side, while slightly higher billet prices have been the main reason for the price upticks in question. As for the coming week, it is believed that the market will continue to move on a mostly stable trend.

The Chinese domestic welded pipe market has mainly followed a rising trend in the past seven days. While overall trading activity has started to slacken, increases in upstream steel strip prices have provided support for higher welded pipe prices. As for the week ahead, slack trading activity is expected to limit the upward movement of welded pipe prices. 

 

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

$1 = RMB 6.59