Chinese domestic steel pipe market moves going down further  

The local Chinese steel pipe market has indicated a decreasing trend in the past week.

As of January 18, 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 $818/mt (RMB 5,267/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $818/mt (RMB 5,267/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 $661/mt (RMB 4,260/mt) and $657/mt (RMB 4,230/mt) respectively. All the above prices include 17 percent VAT.

Amid ongoing sluggish activity, in the past week the local Chinese seamless pipe market has followed a downward trend, mainly due to decreases in billet prices. Traders are mostly downbeat on the prospects for the market due to the weakness of downstream demand. It is believed that domestic seamless pipe prices may continue to decline in the coming week though at a slower pace, while demand may improve slightly.

The Chinese domestic welded pipe market has moved downwards in the past week, principally due to decreases seen in steel strip prices. Overall trading activity for welded pipes has remained slack due to the winter off-season and as downstream buyers are still not ready to build up their inventories. Traders are mostly maintaining a wait-and-see stance during the current downward price movement. As for the coming week, it is thought that domestic welded pipe prices may soften further.  

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.42