The Chinese domestic steel pipe market has mostly followed a sideways trend in the past week amid sluggish demand on the one hand and support from feedstock costs on the other.
As of November 14, 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 $693/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $737/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 $604mt and $605/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe marke
t has followed a stable trend during the past week. While prices of feedstock (billet) have increased slightly, downstream demand for seamless pipes and interest from buyers have been decreasing with the approach of the winter season. Even though prices of billet have risen, it is not clear if this will be reflected in price increases in the domestic seamless pipe market. A few weeks ago when billet prices were soft, local seamless pipe prices did not decline. For the coming week, the stable trend in the local seamless pipe market is expected to continue.
In the past seven days, the Chinese domestic welded pipe market has mostly remained stable though slight upward price movements have been observed in certain local markets for some products. The increase in steel strip prices is the main reason for the slight upticks in question. However, due to the low trade volume and the weak performance of demand, there is insufficient support for price increases and most traders are keeping their price stables as they do not want to negatively impact their sales volumes. Meanwhile, the cold weather is contributing to the flow of supply volumes from the north to the south, and this will increase the inventory pressure on the markets in eastern and southern China. However, considering the firmness of feedstock costs, no strong decline is anticipated in local Chinese welded pipe prices in the week ahead.