Local Chinese steel pipe market mostly follows slight downtrend

The local Chinese steel pipe market has mostly softened slightly during the past week. 

As of July 5, 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 $764/mt (RMB 5,067/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $782/mt (RMB 5,183/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 $663/mt (RMB 4,393/mt) and $656/mt (RMB 4,347/mt) respectively. All the above prices include 16 percent VAT. ($1 = RMB 6.63)

The local Chinese seamless pipe market has been characterized by fluctuations in the past week, with traders' prices in certain regions softening due to the weakness of trading activity. Other traders, however, raised their prices by a small margin due to their low inventory. Downstream demand is mostly slack due to the current off-season, while upstream billet prices have mainly moved sideways. As for the coming week, it is believed that domestic seamless pipe prices may fluctuate slightly depending on demand and inventory levels in different regional markets.  

Against a backdrop of ongoing slackness of demand, the Chinese welded pipe market has followed a mostly soft trend in the past week mainly due to the small downticks seen in upstream steel strip prices. Most traders are unwilling to build up their stocks and only purchase after they have received orders. As for the week ahead, it is believed the welded pipe market may continue its slightly soft trend.

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

$1 = RMB 6.64