Activity still lackluster in local Chinese steel pipe market

As of May 21, 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 $540/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $559/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 $418/mt and $424/mt respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has moved sideways in the past week, with overall trading activity remaining sluggish. Domestic billet prices have mostly softened. Some traders have been giving discounts actual transactions for seamless pipes. As for the coming week, it is believed that seamless pipe prices may edge down due to lack of support amid slack trading activity. 

Local Chinese welded pipe prices have been mostly stable during the past week, though with minor decreases seen also. Trading activity is still slack. Some traders have chosen to reduce their prices slightly in order to attract more business, though most traders are maintaining a wait-and-see stance for now. It is thought that domestic welded pipe prices will remain mainly stable in the coming week, with some slight decreases also possible.

All prices are ex-warehouse and include 17 percent VAT.

$1 = RMB 6.20