Chinese steel pipe market sees sideways movement

As of December 9, 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 $843/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $877/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 $721/mt and $726/mt. All the above prices include 17 percent VAT.
 
The seamless pipe market in China has remained stable this week, although the trading volume has been quite slack. The Chinese central bank's reduction of the deposit reserve ratio did offer some encouragement to market players, though traders know that it will not make a huge difference. The market has entered the off-season and demand is unlikely to improve. It is thought that the Chinese seamless pipe market will maintain its stable in the coming week.
 
China's welded pipe market has also been generally stable in the past week, while downstream demand has started to improve a little. Prices have remained firm with the support of costs. Nevertheless, some traders are willing to cut prices in order to increase their trade volumes and bring in cash. Overall, the welded pipe market in China is characterized by a wait-and-see atmosphere, and this is expected to continue also in the coming week.