Local Chinese seamless pipe prices remain stable, while welded pipe prices slightly decrease

Domestic seamless pipe prices in China have moved sideways during the past week, while domestic welded pipe prices have decreased slightly in the given period.

As of June 6 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 $678/mt (RMB 4,667/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $690/mt (RMB 4,750/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 $630/mt (RMB 4,337/mt) and $624/mt (RMB 4,293/mt) respectively. All the above prices include 13 percent VAT.

Prices in the local Chinese seamless pipe market have remained stable during the past week, while overall trading activity has been at low levels. Upstream billet prices have slightly decreased in the given week but most pipe producers have kept their prices stable. Since it is the traditionally off-season in China, demand in the local seamless pipe market has mostly been weak. While traders mostly hold a negative view as regards the future trend of the market, they are unwilling to increase their stock levels. As for the week ahead, it is believed that seamless pipe prices may mostly follow a stable trend.

Prices in the local Chinese welded pipe market have continued to fall, while overall trading activity has been at low levels since it is a traditionally off season in China. Upstream steel strip and raw material prices have slightly declined during the past week which has caused welded pipe prices to fall further. As for the week ahead, most traders believed that domestic welded pipe prices in China may remain stable.

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

$1 = RMB 6.91