As of June 7, 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 $795/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $837/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 $663/mt and $670/mt. All the above prices include 17 percent VAT.
Trading activity in the Chinese domestic seamless pipe market is still slack, while traders are pessimistic as regards the prospects for the future market trend. Low demand may put pressure on upstream billet prices, and this in turn could negatively impact local seamless pipe prices. For the coming week, it is expected that seamless pipe prices in China will continue to move down.
The domestic welded pipe market in China is also characterized by sluggish demand and falling prices. With decreases seen in scrap prices, traders think that further declines may eventually be witnessed in welded pipe prices and so they are maintaining a wait-and-see stance. The downtrend in welded pipe prices in China is expected to continue in the coming seven days.