Lackluster activity in overall Chinese domestic steel pipe market

The Chinese domestic steel pipe market has mostly moved sideways in terms of seamless pipe prices in the past week, while it has witnessed slight downticks in welded pipe prices. 
 
As of June 12, 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 $653/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $696/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 $567/mt and $571/mt respectively. All the above prices include 17 percent VAT.
 
Local Chinese seamless pipe prices have mainly moved on a stable trend during the past week, though with minor declines also seen in prices in a few cities. Overall trading activity is still slack, while mills' quoted prices as well as upstream billet prices have remained unchanged. Accordingly, the seamless pipe market is expected to continue its stable movement in the week ahead.
 
The Chinese domestic welded pipe market has seen slight decreases in prices in the past week, while the trading volume has been quite low. Traders state that downstream demand has been declining as construction activity is now slower with the arrival of the wheat harvest season. It is believed that the slight downtrend in the market will continue in the coming week due to the ongoing sluggishness of demand.