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, though with some slight upticks also seen.

As of April 18, 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 $720/mt (RMB 4,833/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $733/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 $652/mt (RMB 4,373/mt) and $645/mt (RMB 4,327/mt) respectively. All the above prices include 13 percent VAT.

Overall trading activity has been at low levels in the past seven days in the local Chinese seamless pipe market where prices have moved sideways. Upstream billet prices have indicated minor fluctuations. Sentiment among traders is mostly downbeat and they are unwilling to build up their stocks. As for the week ahead, it is believed that, without firm support from the cost side, domestic seamless pipe prices may follow a slightly soft trend.

The Chinese domestic welded pipe market has indicated a mainly stable trend in the past week, though with slight increases observed in some prices. Overall trading activity has been at normal levels. Steel strip prices have increased slightly, contributing to the minor rises seen in some welded pipe prices. However, most traders have chosen to keep their prices stable order to close more deals. As for the week ahead, it is believed that domestic welded pipe prices may fluctuate on a slightly upward trend.

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

$1 = RMB 6.71