Local Chinese steel pipe market mostly follows a downward trend

The local Chinese steel pipe market has mostly moved on a soft trend in the past week.

As of December 21, 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 $865/mt (RMB 5,683/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $857/mt (RMB 5,633/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 $705/mt (RMB 4,630/mt) and $700/mt (RMB 4,600/mt) respectively. All the above prices include 17 percent VAT.

Prices in the local Chinese seamless pipe market have indicated either stable or downward movement in the past seven days, with the decreases influenced by the declining movement of billet prices. Overall trading activity in the market has remained weak. Many traders kept their prices unchanged as any price decreases were unlikely to spark an improvement in demand. As for the coming week, with both supply and demand at low levels and given the lack of support from upstream raw material prices, it is thought local seamless pipe prices may fluctuate on a slightly soft trend in the week ahead. 

The Chinese domestic welded pipe market has followed a downward trend in the past week, mainly due to decreases in upstream steel strip prices, while trading activity in the market has remained slack. However, as market inventories are low, traders are unwilling to reduce their prices by large margins. As for the week ahead, it is believed that domestic welded pipe prices will move on a slightly soft trend, while strip prices will still be the main factor influencing the market trend.

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

$1 = RMB 6.58