Demand still lacks strength in Chinese steel pipe market

In the past week, the Chinese seamless pipe market has moved on a stable trend, while the domestic welded pipe market has witnessed increases in prices. 
 
As of April 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 $666/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $707/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 $586/mt and $588/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has indicated a stable trend in the past week. Overall trading activity is still slack. Most downstream buyers are maintaining a wait-and-see stance. Traders are unsure as regards the likely future trend of the market and are purchasing just in line with their needs and keeping their inventories at low levels. While billet prices in China have indicated increases, upward movement of seamless pipe prices is prevented by the sluggish trading activity. For the coming week, it is believed that Chinese domestic seamless pipe prices will mainly follow a stable trend.
 
The local Chinese welded pipe market has moved in an upward direction in the past week due to the rebound seen in steel strip prices. However, activity in the market is still on the slack side though demand has started to improve amid warmer weather conditions. As for the next seven days, it is thought that Chinese domestic welded pipe prices may indicate just slight fluctuations.