Local Chinese steel pipe market follows a soft trend

The local Chinese steel pipe market has followed a decreasing trend during the past week.

As of September 28, 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 $813/mt (RMB 5,417/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $808/mt (RMB 5,383/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 $650/mt (RMB 4,330/mt) and $646/mt (RMB 4,300/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has indicated a downward trend during the past seven days, while trading activity remains weak. Most traders have chosen to reduce prices or offer discounts but buyers have mostly continued to maintain a wait-and-see stance due to decreases in upstream prices, though there has been some slight improvement in demand. As for the post-holiday period, it is expected that the local seamless pipe market will mainly fluctuate on a downward trend.

The Chinese domestic welded pipe market has also followed a soft trend in the past week mainly due to decreases in steel strip prices. Overall trading activity has increased slightly ahead of the holiday but is still at low levels. Downstream demand has also been weakened by environmental measures. It is believed that domestic welded pipe prices may fluctuate on a soft trend after the holiday.

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

$1 = RMB 6.66