Local Chinese pipe prices mostly decline further

Local Chinese steel pipe prices have mostly continued their downward trend during the past week.

As of December 2, 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 $949/mt (RMB 6,050/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $954/mt (RMB 6,077/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 $855/mt (RMB 5,450/mt) and $851/mt (RMB 5,420/mt) respectively. All the above prices include 13 percent VAT.

Chinese seamless pipe prices have mostly declined during the past seven days. Overall trading activity is still weak due to the cold winter offseason. Prices of billet and other raw materials have recently rebounded in both the spot and futures market, providing some support for seamless pipe prices. As for the week ahead, considering the weakness of demand and the uncertainty regarding the raw material price trend, it is believed that seamless pipe prices may just fluctuate slightly.

Chinese welded pipe prices have continued their downward trend during the past week. Upstream steel strip prices have followed a rising trend but since demand has remained weak, most traders still chose to reduce their quoted prices in order to close more deals. As for the week ahead, considering the downstream side has been impacted by the winter offseason and the coronavirus pandemic, it is believed that welded pipe prices in China may fluctuate on a downward trend.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.372