As of October 9, 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 stood at $911/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $924/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 were respectively standing at $776/mt and $780/mt. All the above prices include 17 percent VAT.
Chinese seamless pipe on downtrend amid weak demand
This week the eastern China seamless pipe market recorded a slight decline. Amid slackness on the demand side, traders reduced their quoted prices. Overall, currently the market is in a weak situation and is expected to continue for a further while. The northern China seamless pipe market was also on a weak trend in the week in question. With the whole domestic steel market indicating weakness, trader confidence is low. Currently, the strategy of traders is to sell off materials as fast as possible in order to have inventory at minimum levels. It is expected that the northern market will remain on a weak trend in the short term. The southern seamless pipe market was relatively stable in the given week. While prices did not obviously decrease, the tendency in the market was still soft. It is expected that the southern pipe market will not remain at high price levels for long.
Chinese welded pipe market weighed down by negative factors
In the past week, the eastern, northern and southern welded pipe markets have continued to decline after China's National Day holiday, falling by about RMB 50-100/mt. Negative factors influencing this downtrend include the weakening of iron ore prices, the slackening of downstream demand, global economic uncertainty and lack of cash availability in the market. Analysts believe the Chinese welded pipe market will continue to fall in the short term.