In the past seven days, the Chinese domestic steel pipe market has mostly moved on a stable trend in terms of seamless pipe prices, while local welded pipe prices have softened further.
As of January 22, 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 $559/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $591/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 $443/mt and $453/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has mainly followed a stable trend in the past week, though with some slight decreases seen also. While billet prices have softened, seamless pipe producers have not reduced their quoted prices and so market prices have mostly remained stable. Certain traders, however, have cut their prices slightly as they are experiencing tight liquidity and need to bring in cash. Activity in the market has remained slack. As for the coming week, it is believed that, although billet prices may continue to decrease, traders will not reduce their seamless pipe prices as their profit margins are already very low. A sideways price movement is expected in the market in the coming week.
The Chinese domestic welded pipe market has seen smaller decreases in the past week compared to the previous week. Steel strip prices have softened further, while welded pipe mills have continued to reduce their prices, with most traders following suit. Overall trading activity has improved after the previous week's price decreases, but is still on the sluggish side. It is believed that the domestic welded pipe market will continue to follow a downward trend in the week ahead.