Fluctuating prices in Chinese steel pipe market

As of December 20, 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 $703/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $751/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 $616/mt and $622/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has seen stable quotations during the past week, though some mills have chosen to reduce prices for transactions in order to bring in cash. It is believed that domestic billet prices may decline by a further RMB 100/mt, while average prices in the seamless pipe market may accordingly fall by about RMB 50/mt. It is thought that the Chinese seamless pipe market may follow a weak trend during the coming week.
 
Amid upward fluctuations in steel strip prices, China's welded pipe market has indicated a small upward movement in the past week. Traders are choosing to purchase with caution and in small quantities. The trading volume is low amid low availability of cash and no improvement has been seen in demand. However, amid poor weather in northern China, supply has slowed due to transport problems, which may give support for welded pipe market prices. It is thought that in the coming week welded pipe prices in China may first move up and could then move down a little.