Local Chinese steel pipe market follows a soft trend

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

As of January 11, 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 $828/mt (RMB 5,383/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $826/mt (RMB 5,367/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 $675/mt (RMB 4,387/mt) and $670/mt (RMB 4,357/mt) respectively. All the above prices include 17 percent VAT.

Amid the ongoing sluggishness of trading activity, the local Chinese seamless pipe market has moved on a downward trend in the past seven days, mainly due to the further decreases seen in billet prices. Given the current cold weather conditions, it is difficult for demand to improve. It is believed that local seamless pipe prices will remain on their soft trend in the week ahead.

The Chinese domestic welded pipe market has moved downwards in the past week, while overall trading activity has been at low levels due to the cold weather and the off-season for business. On the upstream side, steel strip prices have also decreased. Traders show no sign of wanting to build up stocks at present and are mostly maintaining a wait-and-see stance. As for the week ahead, it is thought that local welded pipe prices will still move on a soft trend though at a slower pace. 

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

$1 = RMB 6.51