Little change observed in local Chinese steel pipe market

China's domestic steel pipe market has generally been stable over the past week, though with some slight softening in prices seen in some areas.
 
As of December 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 $691/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $731/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 $597/mt and $600/mt respectively. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has mostly moved on a stable trend in the past week, though slight downticks have also been witnessed in a few areas. Billet prices have been indicating stable movement, supporting the stability of local seamless pipe prices. Some traders have been willing to lower their prices in order to attract business. Coming close to the end of the year, amid shortages of funds, traders may decide to focus on sales in order to bring in cash. However, there seems to be limited room for fluctuation of prices in the market at present. For the coming week, it is thought that China's domestic seamless pipe market will generally continue its sideways trend.
 
Domestic welded pipe prices in China have mainly been stable in the past seven days, though a slight softening of prices has been observed in some local markets. In Tangshan, restricted electricity supply has negatively impacted production and supply volumes in this market, thereby providing support for prices. At the same time, the slackness of demand due to the cold weather exerts some downward pressure on prices in the overall domestic market. It is believed that China's welded pipe market will mostly follow a stable trend in the coming week.