Over the past week, China's overall pipe market registered an upward trend, with prices of both seamless and welded pipes supported by costs.
Please click to see pipe prices in the Chinese domestic market as of April 14.
Uptrend in Chinese seamless pipe market set to continue
Chinese domestic prices of 20# (GB/T8162-1999) grade 108 mm x 4.5 mm seamless pipe are varying at around RMB 5,750-6,250/mt ($877-953/mt) ex-works, including 17 percent VAT. In addition, domestic prices of 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipes are at around RMB 5,850-6,200/mt ($892-945/mt) ex-works, including VAT.
With the strong growth of common carbon steel prices, prices of square billets have also increased. As a result, seamless pipe producers have raised their ex-works prices by RMB 50/mt ($7/mt). Insiders state that the prices have also been increased due to expectations for higher demand, i.e., based on seasonal factors and the earthquake in Japan. Traders are currently cautious about making purchases, and transaction volumes are on the low side. It thought that increasing raw material prices may provide support for seamless pipe prices in the short term.
China's welded pipe market may benefit from increased construction
Current local prices of Q195-215 grade 48 mm x 3.25 mm Chinese welded pipes are at about RMB 4,900-5,150/mt ($747-785/mt) ex-works (here and below on actual weight basis and excluding 17 percent VAT). Local quotations of Q215-235 grade 114 mm x 3.75 mm welded pipes are at RMB 4,870-5,150/mt ($742-785/mt) ex-works.
Since the price of billet has risen by RMB 70/mt ($10/mt), most domestic strip producers have raised their ex-works prices. Steel demand in the domestic market has lately started to increase due to the resumption of construction works. For the coming week, the welded pipe market in China is expected to maintain its strength.