Local Chinese steel pipe market mostly follows slightly soft trend

The local Chinese steel pipe market has mostly moved on a slightly soft trend in the past week.

As of June 21, 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 $783/mt (RMB 5,087/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $801/mt (RMB 5,203/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 $682/mt (RMB 4,433/mt) and $675/mt (RMB 4,387/mt) respectively. All the above prices include 16 percent VAT.

Amid low trading activity, the local Chinese seamless pipe market has mainly been characterized by slight downticks in the past seven days, primarily due to the minor decreases seen in upstream billet prices and tighter liquidity among traders. However, price reductions are not expected to have much impact on trading activity considering the current off-season and the hot or rainy weather conditions in China. As for the coming week, it is believed that domestic seamless pipe price may mostly move sideways, with slight downticks possible in certain local markets.

The local Chinese welded pipe market has mostly followed a slightly soft trend in the past week, while overall trading activity has remained weak due to the off-season and adverse weather conditions. Upstream steel strip prices and raw material futures prices have also been characterized by soft trends. As for the coming week, it is believed that domestic welded pipe prices may indicate minor downticks.

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

$1 = RMB 6.50