The local Chinese steel pipe market has moved on a slight downtrend during the past seven days.
As of July 9, 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 $513/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $527/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 $391/mt and $395/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has continued to see downticks in prices during the past week, while demand has remained very weak. Billet prices have also decreased, while downstream demand is slack. Furthermore, weather conditions are expected to become hotter and so an improvement in demand is unlikely. Slight decreases in prices are anticipated in the coming week.
The local Chinese welded pipe market has also seen minor declines in prices in the past week, while trading activity has remained slack. Some producers have restricted their production volumes, thereby providing some support for market prices. Traders believe decreases in prices will not have a lot of success in attracting downstream demand and so they have only cut their prices slightly. For the week ahead, further slight downticks in prices are anticipated.