Different price trends in local Chinese steel pipe market

Prices in the local Chinese steel pipe market have showed different trends during past week.

As of August 30 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 $778/mt (RMB 5,320/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $788/mt (RMB 5,387/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 $698/mt (RMB 4,773/mt) and $690/mt (RMB 4,717/mt) respectively. All the above prices include 16 percent VAT.

During the given week, prices in the local Chinese seamless pipe market mostly remained stable, though prices have increased for in certain regions. Overall trading activity has remained slack, while upstream billet prices have slightly increased and environment measures continued to impact the market inventory and seamless pipe supplies.In the coming week, it is believed that pries in the local Chinese seamless pipe prices will mostly remain stable.

In the same week, prices in the local Chinese welded pipe market prices moved downwards, due to the low trading activity and decreasing steel strip prices. At the last week of August, traders mostly are willing to reduce the prices in order to close deals. As for next week, considering the environment measure is still influencing supply volume, welded pipe prices may not have much space for further large declines. Therefore, it is believed that domestic welded pipe prices in China will fluctuate in small margin in the coming week.

16 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.83