Chinese steel pipe market mostly indicates stable movement

As of November 1, 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 $671/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $749/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 $640/mt and $647/mt. All the above prices include 17 percent VAT.
 
China's seamless pipe market has mostly moved on a stable trend during the past week, though increases have continued to be seen in some areas, with upticks seen for certain pipe products amid strong demand and low stock levels. It is thought that China's seamless pipe market will remain on a stable trend in the short term.
 
The domestic welded pipe market in China has also indicated stable movement during the past week. Many welded pipe mills believe that steel strip is currently overpriced and so they have been maintaining a wait-and-see stance as regards steel strip purchases. For the coming week, fluctuations in steel strip prices may exert an influence on China's welded pipe market. Meanwhile, the 18th National Congress of the Communist Party of China will get underway on November 8, and positive expectations due to this event may have a favorable influence on the domestic steel markets.