Local Chinese steel pipe market mostly follows a downward trend

The local Chinese steel pipe market has mostly been characterized by a soft trend during the past week.

As of December 13, 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 $700/mt (RMB 4,817/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $715/mt (RMB 4,917/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 $617/mt (RMB 4,243/mt) and $610/mt (RMB 4,197/mt) respectively. All the above prices include 16 percent VAT.

Prices in the local Chinese seamless pipe market have either softened or moved sideways during the past week. Overall trading activity has remained weak. Upstream billet prices have rebounded following previous increases. On the other hand, low seamless pipe inventories have provided support for market prices. As for the week ahead, it is believed that seamless pipe prices may fluctuate on a slightly soft trend amid weak demand during the current off-season.

Chinese domestic welded pipe prices have mostly decreased slightly during the past seven days. Overall trading activity has been at low levels due to the off-season and cold weather. As for the week ahead, it is thought that domestic welded pipe prices may continue their downtrend.

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

$1 = RMB 6.88