Chinese pipe market price mostly move up

The local Chinese steel pipe market prices have mostly moved up over the past week.

As of August 2 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 $749/mt (RMB 5,123/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $766/mt (RMB 5,240/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 $670/mt (RMB 4,583/mt) and $663/mt (RMB 4,537/mt) respectively. All the above prices include 16 percent VAT.

Domestic seamless pipe prices in China have indicated a mostly stable trend over the past week, though some prices have increased week on week. The overall trade volume in the local Chinese seamless pipe market has remained at low levels in this period. On the other hand, seamless pipe prices in certain regions have increased against the backdrop of the rises seen in rebar future prices and also with the support provided by the production cuts. But mostly traders are more willing to keep their prices stable during this off season. Downstream buyers are maintaining their wait and see stance. As for next week, experts believe that prices in the local Chinese seamless pipe market may continue their sideways movement with a potential to increase slightly.

During the past week, domestic welded pipe prices in China have moved up, while overall trade volume in the market has been at good levels. With the support provided by the upstream steel strip quotations and also by the environmental measures have caused a decline in welded pipe supply, and so domestic welded pipe prices in China have indicated a relatively large margin of increase during this off season. Market sources state that the trading volume in the local Chinese welded pipe market has recently been increasing which also provides support to the spot prices. As for next week, since the production limitation policy may still influence the volume of supply as well as the inventories, Chinese welded pipe market may continue its upward trend.

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

$1 = RMB 6.84