Activity still lackluster in Chinese steel pipe market

Trading activity has remained sluggish in the Chinese steel pipe market in the past week - both for welded and seamless pipes.
 
As of January 2, 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 $691/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $729/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 $592/mt and $595/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has followed a stable trend during the past week. The trading volume has not changed much, remaining at low levels. Since overall demand for seamless pipes is still weak, traders do not want to build up their stocks yet. For the coming week, seamless pipe prices in China are expected to maintain their sideways trend.
 
The local Chinese welded pipe market has declined slightly during the past week. Steel strip prices have been mostly stable. The low demand volume and mills' price reductions are the main reasons for the softness observed in market prices. However, on the positive side, the volume of inquiries has started to increase. It is thought that Chinese domestic welded pipe prices may indicate a further slight decrease in the coming week.