Activity remains poor in local Chinese steel pipe market

Local Chinese steel pipe market prices have generally indicated either stable movement or a slight downtrend in the past week. 
 
As of December 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 $417/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $435/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 $325/mt and $321/mt respectively. All the above prices include 17 percent VAT.
 
Chinese domestic seamless pipe prices have moved on a slight downtrend in the past seven days. Upstream billet prices have softened and so most seamless pipe traders have chosen to reduce their prices also, especially against the backdrop of ongoing slack trading activity during the winter season. However, price reductions have had little success in attracting increased business. The slight downtrend in the market is also expected to continue in the coming week.
 
The local Chinese welded pipe market has been mostly stable in the past week. Overall trading activity is still at low levels. Despite the downticks in steel strip prices, traders have chosen to keep prices unchanged since lower prices are unlikely to result in increased activity. Traders are mostly focusing on collecting cash since it is close to the end of the year. Domestic welded pipe prices may remain mostly stable in the coming week, though with some slight downticks also possible.

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

$1 = RMB 6.45