As of October 14, 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 $908/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $924/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 $773/mt and $780/mt. All the above prices include 17 percent VAT.
Lack of confidence seen in Chinese seamless pipe market
In the past week, the seamless pipe market in eastern China recorded a slight drop. Given the slackness on the demand side, traders considered that they had no option but to reduce their quotations. The weak trend in the eastern China seamless pipe market is expected to continue for another while. The seamless pipe market in northern China has also followed a downward trend in the past week, with traders becoming less and less confident. The current strategy of traders in the north is to sell their seamless pipes as fast as possible and to keep their inventories at low levels. In the short term, the seamless pipe market is expected to remain on its soft trend. The southern seamless pipe market has been more stable than the markets in the east and north; the price tendency is the south has been slightly weak, though no significant decreases in price have been seen. Due to lack of support from upstream costs, the seamless pipe market in the south is thought likely to decline in the coming period.
Chinese welded pipe market to maintain downtrend
Welded pipe prices in eastern China have decreased in the past week. Traders consider the price decline to be normal and there has not been any panic in the market. Since there is no great pressure from inventory, it is expected that during the coming week welded pipe prices in eastern China will fluctuate downward by just a small margin. The welded pipe market in southern China has seen a slowdown in its downward movement in the past week and has indicated greater stabllity. However, given the slackness of demand, traders are not very optimistic for the coming period. The welded pipe market in northern China has been characterized by a slight decreasing trend in the past week. Inventory levels are relatively high, and traders have not been inclined to decrease their quotations by large margins. The northern welded pipe market is expected to continue to decline in the short term.