Chinese steel pipe market still characterized by softness

As of November 29, 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 $718/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $763/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 $622/mt and $633/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has generally remained stable in the past week, though with certain areas seeing small decreases in prices. Although billet inventory is still tight, it is not as tight as in previous weeks and billet prices have seen some decreases. In this context, it is thought that seamless pipes prices in China may see minor declines in the coming week.   
 
The domestic welded pipe market in China has maintained its downward trend in the past week, amid lower steel strip prices in Tangshan and a weaker trade volume. Meanwhile, the bad weather has contributed to slower demand for welded pipes. It is believed that further room for downward movement exists in the Chinese welded pipe market and that additional decreases will be seen in the coming week.