Demand still on slack side in local Chinese steel pipe market

Trading activity has remained sluggish in the Chinese steel pipe market in the past week - both for welded and seamless pipes, while prices have been mostly stable, though with small downticks also seen in some welded pipe prices.
 
As of January 9, 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 $691/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $729/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 $591/mt and $593/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has continued its stable trend during the past week, though trading activity still remains slack. Traders believe the market will not see any improvement in activity or in prices as the Chinese New Year approaches. Most traders indicate that their inventories are at sufficient levels. In the coming week, China's domestic seamless pipe market is expected to continue its stable trend.
 
The price trend of the local Chinese welded pipe market has varied between stability and a slight downtrend in the past week. Overall, both mills and traders report slack transaction activity though the volumes of inquiries are on the high side. Most traders are maintaining a wait-and-see stance. Demand for welded pipes from the construction sector is low, while supply volumes have not decreased. Traders are not very confident as regards the future prospects for the market. It is thought that the Chinese domestic welded pipe market will continue to see sluggish activity in the coming week, while the market is expected to be mostly stable though also with some slight downticks in prices.