Local Chinese steel pipe market mostly follows slight uptrend

The local Chinese steel pipe market has mainly indicated a slight uptrend in the past week.

As of November 23, 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 $845/mt (RMB 5,567/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $837/mt (RMB 5,517/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 $716/mt (RMB 4,720/mt) and $712/mt (RMB 4,690/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.59)

Despite the ongoing weakness of demand, the Chinese domestic seamless pipe market has mostly fluctuated on an upward trend in the past seven days with support from increases in billet prices. However, some prices in the welded pipe market have remained stable due to lack of support from demand. It is believed that the seamless pipe market will just indicate slight fluctuations in the coming week amid weak demand and low supply.

Local Chinese welded pipe prices have mostly increased slightly in the past week on the back of minor increases in steel strip prices. Overall trading activity is at low levels amid colder weather and environmental protection measures. Sentiment among traders is generally downbeat. As for the coming week, it is thought that domestic welded pipe prices may fluctuate on a slightly soft trend.

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

$1 = RMB 6.58