The Chinese domestic steel pipe market has mostly moved on a stable trend in the past seven days, though with slight downticks seen in some welded pipe prices.
As of December 11, 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 $567/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $599/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 $497/mt and $504/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has followed a sideways trend during the past week. In the current off-season for business, traders are not inclined to reduce their prices as lower prices are unlikely to result in any improvement in the sluggish demand situation. Inventories are still at medium levels. It is believed that the stable trend in the domestic seamless pipe market will continue also in the coming week.
The Chinese domestic welded pipe market has mainly indicated stable movement in the past week, but with slight decreases seen for some products. Traders have been willing to sell at lower prices, but increases in steel strip prices have provided support for the stability of welded pipe prices in the past week. The overall trading volume is very low due to the colder weather and the off-season for business, and it is believed that demand will slacken even further due to the impact of the cold weather on construction activity. As for the week ahead, local welded pipe prices are expected to remain mostly stable, with some slight downticks possible also.