Diverse trends in local Chinese steel pipe market

In the past week, the Chinese domestic steel pipe market has mostly moved on a stable trend in terms of seamless pipe prices, while welded pipe prices have indicated upward movement. 

As of August 6, 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 $497/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $511/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 $396/mt and $399/mt respectively. All the above prices include 17 percent VAT.

Local Chinese seamless pipe prices have mostly followed a stable trend in the past seven days, with some slight downticks also seen. Overall trading activity has remained at very low levels. Although billet prices have moved up, some traders are willing to offer certain discounts or reduce their prices slightly in order to attract deals. Market inventories are currently on the low side. As for the coming week, it is believed that prices will be mostly stable with some minor fluctuations.
 
The Chinese domestic welded pipe market has moved on an upward trend during the past week. Trading activity has been slow due to hot weather conditions, while the rise in steel strip prices has provided support for the upward movement of welded pipe prices .Low inventory has also provided support for prices. It is expected that local welded pipe prices will mainly follow a sideways trend in the week ahead, with just slight fluctuations possible.

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

$1 = RMB 6.21