Local Chinese steel pipe market follows a downward trend

The local Chinese steel pipe market has continued its soft trend during the past week.

As of November 8, 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 $767/mt (RMB 5,317/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $783/mt (RMB 5,423/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 $672/mt (RMB 4,660/mt) and $667/mt (RMB 4,620/mt) respectively. All the above prices include 16 percent VAT.

Chinese domestic seamless pipe prices have mostly followed a downward trend during the seven days, under the influence of the overall low levels of trading activity and the soft trend of billet prices. As for the week ahead, it is thought that domestic seamless pipe prices may continue to soften slightly.

The local Chinese welded pipe market has continued to move on a downward trend amid slack trading activity and the soft trend of upstream steel strip prices. Downstream demand has slowed further due to cold weather conditions. Increases in inventory have also contributed to the weak trend of welded pipe prices. As for the coming week, it is believed that the domestic welded pipe market may continue its declining trend as the off-season is approaching.

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

$1 = RMB 6.93