Local Chinese pipe prices move sideways or indicate slight changes

In the past week, local Chinese steel pipe prices have either remained stable or indicated slight changes.

As of February 21, 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 $714/mt (RMB 4,800/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $727/mt (RMB 4,883/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 $634/mt (RMB 4,260/mt) and $627/mt (RMB 4,213/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have mostly moved sideways in the past seven days, but with some slight price increases also seen supported by higher prices from producers. Overall trading activity in the market has remained at low levels since downstream buyers are still maintaining a wait-and-see stance. Most traders have kept their prices stable considering that demand has not fully recovered. As for the week ahead, it is believed that the local seamless pipe market will mainly follow a stable trend, with some minor upticks also as demand gradually improves.

Chinese domestic welded pipe prices have softened slightly during the past week, mainly due to decreases seen in steel strip prices. Overall trading activity has been at low levels, especially as demand from the downstream construction sector has generally failed to increase so far. As for the week ahead, it is believed that domestic welded pipe prices will move on a stable trend or rise slightly as demand is expected to show some improvement.

16 percent VAT is included in all prices and all prices are ex-warehouse.

$1 = RMB 6.72