As of August 15, 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 stands at $694/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $735/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 $625/mt and $633/mt. All the above prices include 17 percent VAT.
China's seamless pipe market has followed a stable trend during the past week. Billet prices have been moving on an upward trend and will likely continue to increase during the coming week. On the other hand, however, the hot weather has contributed to the slackness of demand for seamless pipes and lower production volumes. In this overall context, Chinese domestic seamless pipe prices will likely maintain their stable movement in the week ahead.
The Chinese welded pipe market has generally moved on an upward trend during the past seven days, with certain local markets seeing increases of RMB 30-50/mt during the week amid rising upstream costs and mills' higher prices. However, prices have remained stable in some local markets amid low trading volumes. Overall, the hot weather continues to limit the demand for welded pipes. Although steel strip prices continue to move up, the upward room for strip prices is limited by slow demand. According to market insiders steel strip production volumes are increasing, which may negatively impact welded pipe prices in the near future. In the coming week, Chinese welded pipe prices will probably move on flucutating trend, with some slight downticks.