Chinese steel pipe market still faces weak demand

The Chinese steel pipe market continues to show signs of weakness amid overall sluggish demand.
 
As of December 13, 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 $703/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $751/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 $611/mt and $618/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has showed a downward trend during the past week, influenced by some decreases in feedstock costs, while demand for seamless pipes has remained slack and is unable to provide support for prices. It is expected that China's seamless pipe market will continue its downtrend during the coming week.
 
The Chinese welded pipe market has seen some variation in price trends in the past seven days. In central China, the local welded pipe market has been influenced by increases in steel strip prices and has also moved up slightly. In the overall Chinese market, traders say that deal prices are dependent on volumes, while many traders prefer to keep their prices stable in order to attract more business towards the end of the year. In addition, in some areas where inventory has been high, prices have been reduced slightly to attract more orders. It is believed that the Chinese welded pipe market may indicate a decline in the coming week given the current slack demand situation.