Chinese steel pipe market may see greater stability in coming period

As of October 11, 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 $692/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $742/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 $635/mt and $636/mt. All the above prices include 17 percent VAT.
 
China's seamless pipe market has seen small price increases after China's National Day holiday (October 1-7). As for the coming period, most traders believe that, following price increases already seen in the market and the stock replenishing activity already carried out, demand may get decrease in the coming period and so prices may enter a stable trend.
 
Against the background of increases in iron ore, billet and steel strip prices, China's welded pipe market has also followed an upward. Meanwhile, the trade volume has also improved, thereby providing further support for welded pipe prices. However, observers state that demand is mostly based on regular customers, and that not much new demand is seen. With steel strip prices showing greater signs of stability lately, domestic welded pipe prices may also see greater stability in the coming period.