As of November 3, 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 $858/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $903/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 $745/mt and $755/mt. All the above prices include 17 percent VAT.
Some signs of stability in Chinese seamless pipe market
The seamless pipe market in eastern China has generally declined in the past week. Room for downward movement still exists and traders are expecting further decreases during the coming week. In the past week, the seamless pipe market in southern China halted its decline and started to become stable. At present, local traders in the south are very cautious about concluding deals given the current tight availability of funds. It is thought that the southern market still has room for further decreases in the near future. In the northern seamless pipe market, the price trend also became stable during the past week. There were even slight increases in some prices. Most traders have said that inventory pressure is not great and that their main aim is to bring in funds and increase their sales. Accordingly, it is expected that in the short term the northern seamless pipe market will decline again.
Chinese welded pipe market still characterized by softness
Welded pipe prices in eastern China have decreased in the past week. However, traders considered the price declines to be normal and there was no panic in the market. Since inventory pressure is not great, it is expected that welded pipe prices in eastern China will decline further in the coming week, but only by a small margin. Welded pipe prices in southern China stopped their decline and became stable in the past week. However, with traders still pessimistic and demand still slack, it is expected that the southern China welded pipe market will continue to fall in the short term. The northern China welded pipe market has shown a decreasing trend in the past week. Since inventory levels are relatively low, traders have been unwilling to cut their quotations by large margins. The northern welded pipe market is expected to decline further in the short term.