Local Chinese steel pipe market characterized by soft trend

The local Chinese steel pipe market has mostly moved on a downward trend during the past week.

As of November 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 $828/mt (RMB 5,467/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $813/mt (RMB 5,367/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 $686/mt (RMB 4,530/mt) and $682/mt (RMB 4,500/mt) respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has mainly indicated a soft trend in the past seven days under the influence of lower billet prices and reduced raw material futures prices, while trading activity in the market has remained at low levels. Traders have been seeking to conclude sales and do not want to build up their stocks. As for the week ahead, it is believed that domestic seamless pipe prices may fluctuate on a downward trend.

The local Chinese welded pipe market has moved down slightly in the past week mainly due to minor decreases seen in steel strip prices, while trading activity in the market has been slack due to environmental measures and colder weather conditions. Traders are mostly downbeat on the future prospects for the market as the traditional sales season is now over, while their mood has also been impacted by the decreases seen in raw material futures prices. As for the week ahead, it is believed that domestic welded pipe prices may fluctuate on a downward trend.

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

$1 = RMB 6.60