Chinese seamless pipe market stable, welded pipe moves up

As of September 13, 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 $685/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $735/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 $577/mt and $585/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has moved sideways in the past week, with the trade volume at normal levels. Although the domestic steel market in China has recently witnessed rebounds in prices, the local seamless pipe market has not followed suit as the demand side has been weaker than expected. Traders are still cautious, and some have stated actual trade volumes may start to decline. It is believed that China's seamless pipe market will most likely follow a stable trend in the coming week, though even a slight drop could also be seen.
 
On the other hand, China's welded pipe market has followed the trend of the rebound seen in feedstock prices. Meanwhile, trade volumes have not improved. Mills have increased their quoted prices, while traders are also raising their prices but by a smaller margin. Traders are also giving discounts in actual negotiations in order to attract customers. Demand will be the decisive factor which will determine whether the uptrend in Chinese welded pipe prices continues also in the week ahead.