Latest situation in local Chinese steel pipe market

The Chinese domestic seamless steel pipe market has been mostly stable in the past week, seamless, while the local welded pipe market has indicated some slight downticks on week-on-week basis. 
 
As of May 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 $658/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $699/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 $576/mt and $579/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has mostly followed a sideways trend in the past week. Coming close to June, which is normally the off-season, demand volumes have been getting weaker. Traders are mostly focusing on sales part but are unable to reduce their prices due to the strength of billet prices. Positive news in the market is scarce and both traders and mills hope that market prices will remain on a stable trend. For the coming week, jt is thought that the stable trend in the market will continue. 
 
In the past week, China's local welded pipe market first moved down, before starting to move back up in the last few days. However, overall, prices are down slightly compared to one week ago. The slight rebound was due to the support of feedstock prices. Traders are still maintaining a wait-and-see stance. With the Dragon Boat festival (May 31-June 2) in China this weekend, demand may decrease slightly. However, if feedstock prices continue to perform well, Chinese domestic welded pipe prices may indicate a slight upward movement in the coming week.