Chinese steel pipe market mostly follows a stable trend

China's steel pipe market has mostly been characterized by a stable trend in the past week, while demand still fails to impress.
 
As of June 20, 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 $687/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $730/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 $603/mt and $607/mt respectively. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has mostly moved on a stable trend during the past week. Although the recent rebound in prices of rebar and other steel products may encourage pipe mills to consider increasing their prices, sentiment among traders is still negative. The traders believe that, without the backing of demand, there will be insufficient support for prices. At the same time, the current stability of prices and the trend of billet prices give some reason for hope. In the coming week, seamless pipe prices in China may edge up slightly.
 
China's domestic welded pipe market has followed a stable trend in many regions of the country during the past week, though welded pipe prices in the eastern region have moved up following the rebound in local steel strip prices. However, market players in the east are waiting to see if the trading volume will also improve. Under the influence of the weather, demand in other regions of the country is still on the slack side. At present, the outlook for China's domestic welded pipe market is still uncertain, while it is thought that prices may just fluctuate within a narrow margin in the coming week.