The Chinese steel pipe market has continued to show some signs of weakness in the past seven days amid slackness in activity levels.
As of October 31, 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 $689/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $732/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 $601/mt and $612/mt. All the above prices include 17 percent VAT.
Average prices in the Chinese domestic seamless pipe market are down slightly compared to one week ago. Decreases in quotations of mills in eastern China influenced sentiment in the overall market. Meanwhile, traders have reduced their purchase volumes and have a negative view of the prospects for the market. It is believed that the local Chinese seamless pipe market may indicate some slight weakness in prices in the coming week.
The local Chinese welded pipe market has indicated some signs of softness in the past week, influenced by downticks in steel strip prices, though some welded pipe prices have also moved on a stable trend in the week in question. Since the weather in northern China is getting colder, market activity in the region has declined significantly. Accordingly, supplies are expected to flow from the north to southern China and to put pressure on prices there. Overall, the trend of welded pipe prices in China is expected to vary between slight decline and stability in the coming seven days, depending on variations in supply and demand in different areas of the country.