Downward movement has continued in the overall Chinese steel pipe market in the past week, while demand remains poor.
As of August 2, 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 $748/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $795/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 $631/mt and $643/mt. All the above prices include 17 percent VAT.
China's seamless pipe market has followed a downward trend in the past week. Market demand is still slack. Traders have been under pressure from costs and some of them have been selling at a loss. Due to the tightening of traders' margins, the decline in their prices has been smaller than in the previous week. It is expected that China's seamless pipe market will maintain its soft trend in the coming week.
The welded pipe market in China has seen slower downward movement in the past week. There is strong competition among traders as they are eager to sell off inventories in order to reduce risks. However, demand remains poor. The downtrend in the domestic welded pipe market is expected to continue in the coming week.