As of August 29, 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 $700/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 $632/mt. All the above prices include 17 percent VAT.
Although local billet prices have moved down slightly, Chinese seamless pipe producers have not reduced their prices during the past week and so the domestic seamless pipe market has mainly been following a stable trend for now. Traders consider the cost of purchasing new materials to be high while their own quotations are also relatively high, and this situation contributes to the low trading volume in the market at the end of the month. At present, it seems difficult for domestic seamless pipe prices to register either upward or downward movement. As for the coming week, unless producers choose to reduce their prices, China's domestic seamless pipe market is likely to continue its stable trend.
The local Chinese welded pipe market has indicated a soft trend in the past week, just like the domestic steel strip market. However, the low stock levels in the market prevent any strong decrease in welded pipe prices. In the meantime, traders are purchasing in line with their needs. A lack of liquidity is currently witnessed in the market. Overall, China's welded pipe market is expected to remain mostly stable in the coming week, with some slight downticks also possible.