Chinese steel pipe market still moves on downward trend

As of August 16, 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 $727/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $777/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 $618/mt and $622/mt. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has mainly followed a downward trend during the past week. Demand is low, while billet producers have continued to reduce their prices. Meanwhile, traders' profits are limited. Seamless pipe prices in China are expected to fluctuate downward in the coming week, amid lower upstream costs.   
 
Welded pipe prices in most Chinese cities have softened in the past week, against a background of lower costs of steel strip and poor demand in the market. However, traders believe current prices are reasonable and that there is a low possibility of further decreases. Rebuilding work after the recent typhoon which hit eastern China may contribute to improved demand in certain markets. The welded pipe market in China is expected to vary between stability and slight decline in the coming week.