Chinese steel pipe market may rise at start of New Year

As of December 27, 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 $703/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $751/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 $620/mt and $626/mt. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has mainly followed a stable trend in the past week. The current trading volume in the market is not high. Coming to the end of the year, traders are focused on paying their debts and so are trying to conclude sales and bring in cash. Accordingly, traders have not raised their prices even though market inventory is low. It is believed that there is a strong possibility that seamless pipe prices in China will increase with the arrival of the New Year. 
 
China's welded pipe market began the past week with an upward trend, but subsequently prices started to move down slightly. The increase in steel strip prices and the bad weather in northern China provide support for welded pipe prices. However, the ongoing decline in the trading volume has exerted a negative impact on the price trend. While mills are trying to increase sales volumes, at the same time they are under pressure from production costs and do not have much room to reduce their prices. It is thought that welded pipe prices in China will move sideways or increase slightly at the start of the New Year.