Domestic steel pipe prices in China maintain their uptrend

Over the past week, domestic steel pipe prices in China have maintained their uptrend.

As of August 16 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 $763/mt (RMB 5,263/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $775/mt (RMB 5,347/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 $687/mt (RMB 4,743/mt) and $679/mt (RMB 4,687/mt) respectively. All the above prices include 16 percent VAT.

During the past week, prices in the local Chinese seamless pipe market have continued their upward movement, while overall trading activity in the market has remained weak. Upstream billet prices are still moving up and this trend is the main reason of the ongoing rises seen in domestic seamless pipe prices. With the influence of the ongoing environmental protection measures in China, seamless pipe volume in the local market as well as the inventory levels are at low levels, providing support for prices in spot market. As for the coming week, experts believe the market price of seamless pipe may continue its uptrend.

In the given period, domestic welded pipe prices in China have increased further. Overall trading activity in the local Chinese welded pipe market has been weak. The rises in upstream steel strip prices have continued, while the environmental protection measures in China has kept limiting the production volume, which is the main reason of the increases seen in domestic welded pipe prices. Demand in the local Chinese welded pipe market has remained at low levels but most traders have positive expectations as regards future trend since traditionally high season for sales is approaching. As for the coming week, domestic welded pipe prices in China are expected to maintain their uptrend as the strong support provided by higher costs and low supply volumes continues. 

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

$1 = RMB 6.90