Demand outlook remains poor for local Chinese steel pipe market

The Chinese domestic steel pipe market has moved on a stable trend as regards seamless pipe prices, while indicating slight downticks for welded pipe prices. 
 
As of December 4, 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 prices and Q215-235 grade 114 mm x 3.75 mm welded pipe prices in the above markets are standing at $498/mt and $505/mt respectively. All the above prices include 17 percent VAT.
 
The Chinese domestic　seamless pipe market has followed a sideways trend during the past seven days, while overall trading activity has been slack. Most traders are worried about the future prospects for the market since activity has become more sluggish in the first few days of December. Mills' quotations have softened slightly in the past week and traders are wondering whether they should also reduce their prices. As for the coming week, it is believed the market trend will be mostly stable, with some slight downticks possible also.
 
Local welded pipe prices in China have decreased slightly during the past week, mainly due to the sluggishness of trading activity. It is thought that domestic welded pipe demand will slacken further as the weather gets colder. As a result, the market is expected to continue to see a slight downtrend in the coming week.