Chinese seamless pipe prices edge up, welded pipe falls further

China's seamless pipe market has moved up in the past week, while the domestic welded pipe market has softened, both influenced by feedstock costs.
 
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 $717/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $762/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 $629/mt and $639/mt. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has fluctuated on an upward trend during the past week. Due to previous increases in round billet prices amid low supply, Chinese seamless pipe mills have come under cost pressure and have moved to increase their prices without the support of demand. In recent days, however, round billet prices have started to move on a more stable trend. Although demand is slack, it is believed that the Chinese seamless pipe market will continue to move up in the coming week amid low inventory levels. Nevertheless, any increases may be smaller as compared to those seen in the past week.
 
China's welded pipe market has been characterized by downward price fluctuations in the past week, against the background of softer prices of steel strip. The trading volume has been slack and market sentiment is low. Most mills and traders hold a negative view of the prospects for the Chinese welded pipe market in the coming period..