Chinese domestic steel pipe market still suffers from weak demand

The Chinese domestic steel pipe market has for the most part continued to be characterized by a slight softness in prices in the past week.
 
As of May 8, 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 $663/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $704/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 $586/mt and $589/mt respectively. All the above prices include 17 percent VAT.
 
The local Chinese seamless pipe market has indicated a slight decrease in average prices over the past seven days, influenced by minor downticks in billet prices. The overall trading volume has been slack after the Labor Day holiday, with traders still reluctant to build up their stocks. It is believed that the Chinese seamless pipe market will mostly move on a stable trend in the coming week, with some small decreases also possible.
 
China's domestic welded pipe market has witnessed divergent price trends in local markets in the country in the past week, with traders in certain markets choosing to increase their inventories, causing prices in these markets to rise slightly, whereas other local markets saw slight decreases in prices due to poor demand. The trading volume in the overall domestic market has been on the low side. As for next week, demand volumes are unlikely to improve much and so slight downtrends are expected to continue in certain local markets.