China's steel pipe market, both for seamless and welded pipe, has seen a slight uptrend in the past week, though trading volumes are low.
As of February 21, 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 was at $725/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $767/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 were standing at $639/mt and $644/mt. All the above prices include 17 percent VAT.
After the New Year holiday, the Chinese seamless pipe market has witnessed slight upward movements in certain areas amid some improvement in demand and increases in iron ore prices. However, the overall trade volume in the market is still on the low side, while some traders are not so upbeat and prefer not to build up stocks. Market inventory levels are high as orders placed before the holiday are now arriving in the market. It is believed there will not be sufficient demand to support further price increases and that the domestic seamless pipe market may indicate stable movement in the coming period.
China's welded pipe market has indicated minor increases in prices upon the return from the holiday, while the trading volume is low. Meanwhile, traders still hold low-priced stocks purchased before the holiday. Market players predict a stable trend for the coming days.