Local Chinese steel pipe market fluctuates slightly

The local Chinese steel pipe market has indicated slight fluctuations during the past week. 

As of June 14, 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 5,093/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $818/mt (RMB 5,227/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 $696/mt (RMB 4,450/mt) and $689/mt (RMB 4,403/mt) respectively. All the above prices include 16 percent VAT. ($1 = RMB 6.39) 

Amid small rises in billet prices, the Chinese domestic seamless pipe market has mostly moved up slightly in the past week, though minor downticks have been seen in certain local markets due to weak trading activity and rainy weather. Sentiment among traders is negative since trading activity has still not recovered after the SCO summit. As for the coming week, it is believed that the seamless pipe market may continue to fluctuate slightly. 

The Chinese domestic welded pipe market has been mainly stable in the past seven days, but with some slight declines also seen in some parts of the country as traders sought to conclude deals, while overall trading activity in the domestic market has remained slack. Upstream steel strip prices have risen slightly but with no impact on welded pipe prices due to the weakness of demand. It is believed that the domestic welded pipe market may fluctuate on a slightly soft trend in the week ahead due to the slackness of demand.

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

$1 = RMB 6.39