Local Chinese steel pipe market characterized by slack trading activity

The local Chinese steel pipe market has seen both upward and stable movement in the past week.

As of May 3, 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 $797/mt (RMB 5,067/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $820/mt (RMB 5,217/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 $705/mt (RMB 4,487/mt) and $698/mt (RMB 4,440/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.36)

The local Chinese seamless pipe market has continued to see a mostly stable trend in the past seven days, though with slight price reductions in certain parts of the country. Overall trading activity has remained weak. At the end of April, traders were seeking to conclude sales but the demand side still mostly maintained a wait-and-see stance. Low inventories have provided some support for market prices. As for the coming week, it is believed there is not much space for further decreases due to support from raw material prices. It is thought that domestic seamless pipe prices will move sideways in the week ahead.

The Chinese domestic welded pipe market has moved upwards in the past week with support from higher steel strip prices which caused welded pipe producers to raise their quotations, while overall trading activity has remained at low levels. In some parts of the country, low inventories caused prices to record larger increases. After the Labor Day holiday, support from raw material prices has increased. As for the coming week, it is believed that the local welded pipe market may fluctuate on an upward trend with support from the cost side.

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

$1 = RMB 6.36