Chinese pipe market prices move downward

The local Chinese steel pipe market prices have continued a decreasing trend during past week.

As of November 22 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 $734/mt (RMB 5,083/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $749/mt (RMB 5,190/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 $639/mt (RMB 4,427/mt) and $632/mt (RMB 4,380/mt) respectively. All the above prices include 16 percent VAT.

Chinese seamless market prices have continued to see a decreasing trend during the past week. Overall trading activity has been at a low level due to off season and cold weather. Pipe producers have reduced their prices, leading traders mostly to follow. Downstream demand continued to decline which in turn hardly give any support to seamless pipe market prices. As for the week ahead, it is believed that the Chinese domestic seamless pipe prices are likely to soften.

Chinese welded pipe market prices have showed a downward trend and trading activity has been at a low level. Upstream steel strip prices softened which mainly lead pipe producers to reduce their prices so that the welded pipe market prices have showed a relatively large margin of decreasing. Market inventory has been at a normal level and demand remained weak due to off season. As for the week ahead, it is believed that Chinese domestic welded pipe prices may continue to follow a downtrend.

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

$1 = RMB 6.93