Activity on slack side in local Chinese steel pipe market

The local Chinese steel pipe market has seen both sideways and downward movement in prices in the past seven days.   

 

As of May 5, 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 $526/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $544/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 $456/mt and $472/mt respectively. All the above prices include 17 percent VAT.

 

The local Chinese seamless pipe market has followed a stable trend in the past week, while overall trading activity has been slack. Although their quoted prices are unchanged, traders are willing to offer certain discounts in order to attract business. It is believed that, with the influence of the corrections seen in billet prices, domestic seamless pipe prices may decrease slightly in the coming week. 

The Chinese domestic welded pipe market has indicated a downward trend during the past week against the backdrop of declines in steel strip prices. Following previous increases in welded pipe prices, trading activity has still generally been weak with buyers maintaining a wait-and-see stance, though some slight improvement in demand has been seen in recent days. It is thought that the local welded pipe market price will continue its downward trend in the coming week, though with smaller decrease margins expected.

 

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

 

$1 = RMB 6.50