Demand still slow in overall local Chinese steel pipe market

The Chinese domestic steel pipe market has mostly moved on a stable trend in the past seven days. 
 
As of May 15, 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 $663/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $704/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 $583/mt and $587/mt respectively. All the above prices include 17 percent VAT.
 
The overall trend in the Chinese domestic seamless pipe market has been stable during the past week. Trading activity has been slack, with traders purchasing only in line with their needs and anxious to avoid increases in their inventory levels. Most traders are maintaining a wait-and-see stance. For the coming week, the market is expected to continue its stable trend.
 
China's local welded pipe market has mainly followed a sideways trend in the past week, though slight downticks in prices have been seen in some parts of the country. Traders state that demand is still at low levels. At the same time, feedstock prices have softened. Some traders have chosen to reduce prices due to pressure from shortages of funds or from high inventories. In the coming week, the local welded pipe market is expected to mostly move sideways, with some minor decreases also possible.