The Chinese steel pipe market has been characterized by slow demand and weakness of upstream costs in the past week, with prices likely to decline slightly in the coming week.
As of November 21, 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 $693/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $737/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 $600/mt and $605/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has moved on a stable trend in the past week. Amid fluctuations in billet prices and low demand volumes, local traders are keeping their seamless pipe stocks at low levels and are purchasing only in line with their needs. Given the weakness on the upstream cost side and the poor demand situation, it is thought that domestic seamless pipe prices in China may soften slightly in the coming week.
The local Chinese welded pipe market has declined slightly in the past week, mainly due to the softness of steel strip prices. Both mills and traders have made downward adjustments to their welded pipe prices. Traders state that, while actual trading volumes have not increased, a greater volume of inquiries is now being received, and they hope that the slight decrease in prices will attract an increased volume of orders in the coming week. It is believed that local Chinese welded pipe prices will also be characterized by a slight softness in the coming week.