The Chinese steel pipe market has varied between decrease and stability of prices in the past week, while demand continues to be slack.
As of June 21, 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 $786/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $836/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 $672/mt and $678/mt. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has indicated decreases in some areas in the past week, while prices have remained stable in other areas. Under the influence of slack demand, seamless pipe producers are willing to decrease their quoted prices but remain under pressure from upstream costs. It is thought that mills and traders will cut their prices if the demand side does not improve. During the coming week, it is thought that prices in China's domestic seamless pipe market will continue to be characterized by a soft tendency.
The welded pipe market in China has also seen downward price movements in the past week, while some prices have also remained unchanged. Demand appears unlikely to improve in the short term, while traders are anxious to keep their stocks at low levels. Traders reports that the volume of orders in June is less than in May. The welded pipe market in China is expected to see some downward price movements in the coming seven days.