China's steel pipe market has been characterized by some softness in terms of prices in the past week, while demand in the market is still generally on the lackluster side.
As of October 10, 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 $697/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $735/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 $609mt and $620/mt. All the above prices include 17 percent VAT.
Chinese domestic seamless pipe prices mostly moved on a stable trend during the National Day holiday (Oct. 1-7), while after the holiday prices of certain seamless pipes have declined slightly due to slackness of demand. Current stock levels in the market are on the low side. Given the downticks in billet prices, it is believed that some slight downward movement will be witnessed in local Chinese seamless pipe prices in the coming week.
Influenced by weak activity, China's local welded pipe market indicated a soft trend during the holiday period, while prices have remained on a weak trend after the holiday amid strong competition between traders seeking to attract orders against a backdrop of weak demand. It is thought that Chinese domestic welded pipe prices may follow a stable trend in the week ahead as traders wait for demand to be released.