The Chinese steel pipe market, including both seamless and welded pipes, has witnessed an overall downtrend in the past week amid slack trading activity.
As of May 16, 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 was at $716/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $754/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 standing at $625/mt and $630/mt. All the above prices include 17 percent VAT.
China's domestic seamless pipe market fluctuated on a downward trend during the week in question. The trading volume decreased significantly, causing an increase in negative sentiment among traders. Meanwhile, the declines in prices of other steel products have also contributed to the deterioration in traders' confidence. It is thought that domestic seamless pipe producers will continue their downward adjustment of quotations, but by smaller margins. If billet prices enter a stable trend, then domestic seamless pipe prices may mostly fluctuate sideways at low levels.
The local Chinese welded pipe market has also declined during the week in question. The trading volume for welded pipes in May has indicated an obvious decrease compared to March and April, while construction activity in certain parts of China has been influenced by bad weather, resulting in lower demand for welded pipes. It is expected that the downward trend of domestic welded pipe prices in China will also continue in the coming week.