Chinese steel pipe market mostly stable, with some slight softening

On January 13, 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 stands at $841/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $876/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 $705/mt and $709/mt. All the above prices include 17 percent VAT.
 
The seamless pipe market in China has been mostly stable this week, though with some slight decreases witnessed. Since downstream demand is low and local traders are not inclined to conclude purchases, overall inventory levels in the Chinese seamless pipe market have not changed a lot, but have still declined by a small margin. Most traders, influenced by the situation in the domestic steel markets, are not very confident on the prospects for the future trend of the local seamless pipe market. For the period before the Spring Festival holiday, it is thought that China's seamless pipe market will remain mostly stable but with some small decreases.
 
The Chinese welded pipe market has also been mainly stable in the past week, but with some prices indicating a slight softening. The volume of inquiries in the market has declined significantly. Price adjustments have little impact in sparking activity in the market. Most traders have already completed their planned purchases and will buy additional material only if they run out of stock. Some producers have already started to exit the market ahead of the Spring Festival holiday. In the period before the holiday, it is thought that the Chinese welded pipe market will vary between stability and slight weakness.