The Chinese steel pipe market has generally varied between stability and decline in the past week, amid lower feedstock costs and still slack demand.
As of March 7, 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 $732/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $767/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 $632/mt and $637/mt. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has mostly followed a stable trend in the past week, though some upticks and downticks have also been seen in some local markets. Billet prices have moved down slightly during the past week and this has contributed to the minor downticks in some areas. The trading volume in the overall domestic market is on the weak side, but is somewhat better for large traders. It is thought that there is little possibility of a further decline in the Chinese domestic seamless pipe market, with the market expected to mainly follow a stable trend during the coming week.
The Chinese domestic welded pipe market has generally moved on a soft trend during the past week against the background of declines in local prices of feedstock materials. While some market players have kept their quotations stable, others have reflected lower costs in reduced welded pipe prices. Demand has not recovered yet, but is expected to improve as the weather gets warmer and as construction activity picks up. It is thought that China's welded pipe market could indicate some upward movement during the coming week.