Demand remains weak in local Chinese steel pipe market

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.

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

$1 = RMB 6.74