Chinese steel pipe market moves on different price  trends

Prices in the local Chinese steel pipe market has moved on different trends over the past week.

As of December 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 $686/mt (RMB 4,733/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $705/mt (RMB 4,867/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 (RMB 4,277/mt) and $613/mt (RMB 4,230/mt) respectively. All the above prices include 16 percent VAT.

In the given period, domestic seamless pipe prices in China decreased slightly. Overall trading activity has remained at low levels due to the year-end and winter conditions. Meanwhile, Chinese traders are mostly holding low inventories and they are unwilling to replenish their stocks. In the coming period, prices of domestic seamless pipe in China are expected to continue to decrease slightly since demand may remain slack.

In the same period, prices in the local Chinese welded pipe market have increased slightly, supported by the slight rebound of upstream steel strip prices due to low supplies. However the increase margin has remained small since overall trading activity has remained slack. As for the week ahead, it is expected that domestic welded pipe prices in China may decrease slightly if demand remains weak.

16 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.89