As of August 8, 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 stands at $694/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 $620/mt and $627/mt. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has followed a stable trend during the past week. Overall demand and trading volumes have remained slack, while most downstream users are maintaining a wait-and-see stance, causing traders to keep their stocks at low levels. It is believed that, after the rebound in July, the overall price trend for August will be weak. It is possible that, in order to increase sales, traders will give discounts or reduce prices slightly in next few weeks. The trend for the domestic seamless steel pipe market during the coming week is expected to be mostly stable, though slight downticks could be witnessed for certain products or in certain local markets depending on trading volumes.
China's domestic welded pipe market has followed a fluctuating trend in the past week, with average prices rising slightly. Even though the hot weather has negatively impacted demand for pipes, welded pipe prices have in general edged up with the support of steel strip prices and prices of other construction materials. Traders' stocks are at low levels, while the lack of inventory for certain products will provide some support for market prices. It is thought that Chinese domestic welded pipe prices will move on a stable trend during the coming week, and that the overall market situation will not change much.