Local Chinese steel pipe market follows a rising trend

The local Chinese steel pipe market has moved in an upward direction in the past week.

As of November 16, 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 $827/mt (RMB 5,483/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $822/mt (RMB 5,450/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 $706/mt (RMB 4,680/mt) and $701/mt (RMB 4,650/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.63)

The Chinese domestic seamless pipe market has mostly indicated a rising trend in the past seven days with the support of higher billet prices. Overall trading activity is still weak amid colder winter weather conditions. Traders are seeking to conclude sales, but downstream buyers are pessimistic and are reluctant to purchase. It is thought that the domestic seamless pipe market may fluctuate on a slightly soft trend in the week ahead.

The local Chinese welded pipe market has fluctuated on an upward trend in the past week, while trading activity has been slack amid colder weather conditions and environmental measures. Traders have chosen to follow the upward movement of producers' ex-works prices. Currently, both supply and demand are at low levels. It is expected that domestic welded pipe prices will just indicate slight fluctuations in the coming week.

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

$1 = RMB 6.63