Local Chinese steel pipe market continues to see weak activity

Prices in the local Chinese steel pipe market have moved either sideways or upwards during the past week.

As of October 26, 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 $825/mt (RMB 5,467/mt), with 20#(GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $819/mt (RMB 5,433/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 $687/mt (RMB 4,557/mt) and $683/mt (RMB 4,527/mt) respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has mostly followed a stable trend during the past seven days with the support of stable billet prices, while overall trading activity in the seamless pipe market has remained at low levels. Traders are maintaining a wait-and-see stance and are unwilling to build up stocks. Downstream demand is expected to slacken further as the weather becomes colder. As for the coming week, it is believed that domestic seamless pipe prices may fluctuate on a slightly soft trend.

Local Chinese welded pipe prices have mainly moved upwards during the past week with the support of slight increases in steel strip prices, while overall trading activity for welded pipes has remained weak due to the impact of environmental measures and colder weather. Downstream buyers are mostly maintaining a wait-and-see stance. Market inventory levels are low, thereby providing support for welded pipe prices. As for the week ahead, it is thought that domestic welded pipe prices will just indicate minor fluctuations.

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

$1 = RMB 6.63