Chinese steel pipe market moves on soft trend

The Chinese steel pipe market, both for welded and seamless, has moved on a soft trend in the past week, amid lower feedstock prices.
 
As of December 6, 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 $714/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $759/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 $611/mt and $618/mt. All the above prices include 17 percent VAT.
 
China's seamless pipe market has seen a slight downward trend during the past week. It is thought that domestic billet prices may no longer maintain their stable movement and may enter a downtrend which could last for a while. Accordingly, amid current slack demand, China's seamless pipe market is likely to continue its current downward movement in the coming week.
 
The ongoing downtrend of steel strip prices in southern China has contributed to the declining trend of domestic welded pipe prices. Sentiment in China's welded pipe market is negative and it is believed that further room for decreasing movement exists for welded pipe prices. It is thought that the current downtrend will continue up to the end of the year.