Demand has been recovering slowly in the Chinese steel pipe market, while prices have generally been stable, though with upticks in some areas.
As of March 30, 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 $824/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $853/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 $711/mt and $713/mt. All the above prices include 17 percent VAT.
The seamless pipe market in China has mostly followed a stable trend in the past week, though slight rises have been seen in some cities. Some gradual increase has also been seen in demand levels. Upticks in billet prices may cause some seamless pipe producers to push up their quotations. On the traders' side, inventories are at normal levels, while traders are trying to keep risks to a minimum for the time being. To sum up, China's seamless pipe market is expected to edge upward in the short term.
In March, demand has started to improve slowly in China's welded pipe market, supported by better weather conditions. Producers have reported increases in their trading volumes and some have been trying to increase their quotations, also with the support of higher raw material costs. With the approach of Tomb Sweeping Day (April 4), some traders want to bring in cash and so are offering discounts. It is expected that the welded pipe market in China will maintain a stable trend before Tomb Sweeping Day.