Local Chinese steel pipe market characterized by overall slack activity

The Chinese domestic steel pipe market has seen slight decreases in seamless pipe prices in the past week, while welded pipe prices have been mostly stable. 
 
As of July 24, 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 $634/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $664/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 $550/mt and $557/mt respectively. All the above prices include 17 percent VAT.
 
The local Chinese seamless pipe market has fluctuated on a soft trend during the past week, with most local markets seeing slight decreases in prices. Under the influence of hot weather, domestic demand is quite slack. Meanwhile, mills have made slight downward adjustments to their prices, with most traders following suit. Profit margins are quite slim, while trading activity is unlikely to improve. The market is expected to continue to fluctuate on a weak trend in the coming week.
 
China's domestic welded pipe market has been mainly stable in the past seven days, with only certain markets in the south showing slight decreases in prices. Downstream demand is still low due to the off-season and is unlikely to improve amid hot weather conditions. Traders are still willing to give some discounts in order to attract more deals. For the coming week, the local welded pipe market may indicate some softness due to the low trading activity.