Chinese steel pipe market sees greater stability after previous rises

China's steel pipe market has witnessed increased stability in the past week following the previous rises seen on the back of higher costs.
 
As of January 17, 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 $722/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $764/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 $638/mt and $644/mt. All the above prices include 17 percent VAT.
 
China's seamless pipe market has mainly followed a stable trend during the past week, with a small rise seen only in eastern China as the impact of higher billet prices was reflected in the region later than in other regions of China. It is believed that the strong upward trend seen after the New Year holiday is now over and that pipe producers are not likely to increase their prices further since the trade volume has started to decline. It is thought that China's seamless pipe market will follow a stable trend ahead of the Spring Festival holiday.
 
The trading volume in the Chinese welded pipe market has declined after the New Year holiday, and the uptrend in domestic welded pipe prices has slowed down with prices now characterized by increased stability. With the cold weather, work on outdoor construction projects has mostly been halted and demand for welded pipe is becoming weaker and weaker. It is believed that China's welded pipe market will just see slightly fluctuations before the Spring Festival against a background of slack demand.