Local Chinese steel pipe market continues its upward movement

The local Chinese steel pipe market has indicated an upward trend in the past week.
 
As of August 18, 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 $508/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $527/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 $447/mt and $455/mt respectively. All the above prices include 17 percent VAT.

The rising trend of the local Chinese seamless pipe market in the past seven days has been due to the significant decrease in supply and the ongoing upward movement of domestic billet prices. Meanwhile, overall trading activity has remained slack. As for the coming week, it is believed that domestic seamless pipe prices may continue their rising trend.

Chinese domestic welded pipe prices have continued to move up during the past week amid reduced inventory levels and production restrictions due to environmental protection measures. In the meantime, demand has continued to remain weak. Traders are waiting in anticipation for September which together with October constitutes the traditional peak season for business. Domestic welded pipe prices are expected to continue their upward movement in the week ahead.

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.63