Increases still observed in Chinese steel pipe market

Increases have continued to be observed in the Chinese steel pipe market in the past week, especially for welded pipes.
 
As of September 27, 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 $687/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 $608/mt and $616/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has been mostly stable during the past week, though certain cities have seen slight upward movements in prices. While feedstock prices have risen, seamless pipe traders are maintaining a wait-and-see stance and have generally not increased their prices yet, since new higher-priced supplies have not reached yet the market. In addition, some pipe specifications are not available in the market. Some small traders have already received their higher-priced supplies and so have increased their prices in certain markets. Observers believe that the current trend of stability and slight upward movement will last until the end of the National Day holiday (October 1-7).
 
The welded pipe market in China has maintained its upward trend during the past week, though the price increases have not been followed by any improvement in demand. On the one hand, costs continue to increase, while on the other sales volumes are still weak, which places some downward pressure on prices. Accordingly, traders are in a very difficult position. For the coming week, it is thought that the Chinese welded pipe market may follow a more stable trend.