Demand remains weak in local Chinese steel pipe market

Thursday, 27 July 2017 17:46:29 (GMT+3)   |   Shanghai
       

Prices in the local Chinese steel pipe market have either moved sideways or risen slightly during the past week.

As of July 27, 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 $690/mt (RMB 4,650/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $682/mt (RMB 4,600/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 $612/mt (RMB 4,127/mt) and $604/mt (RMB 4,074/mt) respectively. All the above prices include 17 percent VAT.

Prices in the local Chinese seamless pipe market are either unchanged are slightly higher compared to one week earlier, while overall trading activity is still weak due to the prevailing hot weather conditions. The slight increases seen in some product prices have been due to support from billet prices. Traders are mostly downbeat as regards the prospects for the seamless pipe price trend since demand appears unlikely to improve. As for the coming week, it is believed that domestic seamless pipe may indicate slight fluctuations.

The local Chinese welded pipe market has fluctuated on a slight uptrend during the past week, with support from prices of steel strip and raw materials. Downstream demand remains poor due to the hot weather. Traders are mostly maintaining a wait-and-see stance as prices of both welded pipe and raw materials continue to fluctuate at relatively high levels. As for the week ahead, it is thought that local welded pipe prices will just fluctuate slightly.

 

Product Name

Spec.

Category

City

Steel Plant/Origin

Price (RMB/mt)

Price ($/mt)

Weekly Change (RMB/mt)

Seamless pipe

Φ108 mm x 4.5 mm

20# (GB/T8162-1999)

Shanghai

Wuxi

4,550

675

↑50

Guangzhou

Shandong

4,850

720

↑50

Beijing

Angang

4,550

675

0

Average price

-

4,650

690

↑33

Φ219 mm x 6 mm

20# (GB/T8163-1999)

Shanghai

Zhenda

4,500

668

0

Guangzhou

Angang

4,850

720

↑50

Beijing

Shandong

4,450

660

0

Average price

-

4,600

682

↑17

Welded pipe

Φ48 mm x 3.25 mm

Q195-Q215

Shanghai

Tangshan

4,170

619

↑30

Guangzhou

Guangzhou

4,210

625

↑10

Beijing

Jinghua

4,000

593

↑10

Average price

-

4,127

612

↑17

Ф114 mm x 3.75 mm

Q215-Q235

Shanghai

Huaqi

4,080

605

↑30

Guangzhou

Guangzhou

4,210

625

↑10

Beijing

Zengzhou

3,930

583

↑10

Average price

-

4,074

604

↑17

 

17 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.74


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