China's steel pipe market, for both welded and seamless, has continued to decline in the past week amid slack demand and lower feedstock costs.
As of August 23, 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 $714/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $766/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 $600/mt and $607/mt. All the above prices include 17 percent VAT.
Amid ongoing low demand, the domestic seamless pipe market in China has moved downward in the past week in line with lower prices of steel billet. Traders continue to maintain a cautious approach. It is believed that the current fluctuating downward trend will last until the demand side improves or billet prices regain their stability.
The domestic welded pipe market in China has also softened under the influence of lower upstream costs and poor demand. Most traders are not optimistic on the prospects for the future trend of the market. However, some traders state that they have sold off their high-cost welded pipe inventories and are now able to achieve a small profit. The Chinese welded pipe market is expected to follow a slight downtrend in the coming week.