As of May 3, 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 $836/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $865/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 $707/mt and $711/mt. All the above prices include 17 percent VAT.
Since local prices of blanks for seamless pipes remained stable at the end of April, seamless pipe prices in China have this week also indicated a stable trend. On the downstream side, while there have not been many big orders, the volume of smaller orders has been increasing, and this has provided some support for market prices. However, considering that seamless pipe prices are already at high levels, there does not appear to be much room for increases and so the seamless pipe market may follow a stable trend in the coming period.
The welded pipe market in China has moved down slightly in the past week, mainly due to decreasing strip steel prices. Traders have in general reduced their prices slightly in order to maintain their trade volume. As for the future trend, there does not seem to be large room for further declines. Nevertheless, the Chinese welded pipe market is expected to see slight downward fluctuations in the coming week.