Chinese steel pipe market still struggles with slack demand

As of May 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 $828/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $857/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 $683/mt and $690/mt respectively. All the above prices include 17 percent VAT.
 
The seamless pipe market in China has generally moved on a stable trend in the past week. Demand has been weak in the market and traders are not inclined to replenish their stocks. Some traders have lately received previously ordered supplies, but it will be difficult for them to make a profit on these materials. Meanwhile, feedstock prices have softened somewhat. Traders are maintaining a waiting stance for now, but observers think the seamless pipe market may witness downward movement in the coming week.
 
China's welded pipe market has declined slightly during the past week amid sluggish demand, with producers forced to reduce their quoted prices. Meanwhile, traders are reluctant to make significant cuts to their prices since it is still in the middle of the month and the settlement prices of the mills have not been announced yet, Also, as prices have continued to decrease, buyers have being postponing their purchases. China's welded pipe market will most likely continue to trend down in the coming seven days.