Activity still lackluster in local Chinese steel pipe market

The Chinese domestic steel pipe market has mostly moved on a stable trend in the past week, though with some slight decreases also observed. 
 
As of August 28, 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 $624/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $651/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 $543/mt and $550/mt respectively. All the above prices include 17 percent VAT.
 
In the past seven days, China's domestic seamless pipe market has generally followed a stable trend, with slight decreases seen in certain local markets. Overall trading activity is still slack. Billet prices have softened slightly, while downstream demand is still weak. Most traders are seeking to keep their prices stable in the current off-season. As for the coming week, it is believed that prices are unlikely to move up in the present situation, and will mainly remain stable, with some minor downticks also.
 
The trend in the local Chinese welded pipe market in the past week has been similar to that in the seamless pipe market - mostly stable but with some slight decreases in certain local markets also. The minor decreases in steel strip prices has caused some welded pipe traders to reduce their quoted prices by a slight margin. Overall trading activity is still sluggish, but at the same time inventories are at low levels. Traders are trying to avoid risks and are generally purchasing only to meet orders they have already received. In the week ahead, welded pipe prices in China are expected to remain mostly stable.