Local Chinese steel pipe market mostly follows a stable trend

The local Chinese steel pipe market has mostly followed a stable trend in the past week. 

As of May 31, 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 $788/mt (RMB 5,050/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $811/mt (RMB 5,200/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 $695/mt (RMB 4,453/mt) and $688/mt (RMB 4,407/mt) respectively. All the above prices include 16 percent VAT.

Due to the off-season, overall trading activity has been at low levels in the Chinese domestic seamless pipe market which has mainly moved on a stable trend in the past week, though with slight decreases seen in prices in some local markets. Approaching the end of month, some traders have chosen to reduce their prices slightly in order to close deals. Upstream billet prices have softened slightly. The region around Shandong has been impacted by the approach of the Shanghai Cooperation Organisation (SCO) summit, with both production and demand volumes declining significantly. As for the coming week, it is believed that the domestic seamless pipe market may indicate a stable trend.

The local Chinese welded pipe market has been mostly stable in the past seven days, though with slight increases in southern China supported by slight increases in steel strip prices. Overall trading activity is still weak due to the hot weather and environmental protection measures. Traders mostly hold a negative view of the prospects for the price trend and are unwilling to increase their inventory levels. As for the week ahead, it is believed that the domestic welded pipe market may follow a stable trend, with slight downticks also possible.

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

$1 = RMB 6.41