As of March 28, 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 $722/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $756/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 $635/mt and $639/mt. All the above prices include 17 percent VAT.
Chinese domestic seamless pipe prices have varied between stability and slight decreases in local markets across the country in the past week, depending on demand levels in the various markets. Meanwhile, there has been a minor softening in billet prices, which still provide support for domestic seamless pipe prices. In local markets where offer prices are stable, some discounts have been observed in actual transactions. It is thought that China's domestic seamless pipe market will trend sideways or soften slightly in the coming week.
Local welded pipe prices in China have risen slightly in the past week with the support of steel strip prices. Traders report an increase in confidence levels in the market, which is also reflected in an increased trading volume.
Meanwhile, with construction activity also expected to improve, demand for welded pipes is expected to rise and so welded pipe prices in China will most likely trend upward in the week ahead.