Lackluster activity in overall Chinese domestic steel pipe market

The Chinese steel pipe market has mainly followed a stable trend in the past week. 
 
As of June 26, 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 $562/mt and $568/mt respectively. All the above prices include 17 percent VAT.
 
Chinese domestic seamless pipe prices have moved sideways in the past week. Billet prices in China have just indicated slight fluctuations in the given week and these have had little influence on the trend of seamless pipe prices. Amid slack trading activity, negative sentiment prevails among traders and they are generally ready to negotiate on prices. As regards the coming week, the trend of the Chinese domestic seamless pipe market is expected to be mostly stable, though with some slight downticks.  
 
The local Chinese domestic welded pipe market has on average followed a fairly stable trend in the past week, though some slight price movements have been observed in certain regions. In northeast China, certain traders have chosen to raise their welded pipe prices by a small margin on the back of the slight rebound in steel strip prices. On the other hand, traders in southern China have reduced their prices slightly due to low demand. As for the week ahead, it is expected that domestic welded pipe prices may be characterized by minor fluctuations, with some slight increases possible due to higher upstream costs. At the same time, slow demand will continue to limit any upward price movement in the market