Local Chinese steel pipe market mostly moves sideways

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

As of March 14, 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 $730/mt (RMB 4,900/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 $642/mt (RMB 4,307/mt) and $635/mt (RMB 4,260/mt) respectively. All the above prices include 16 percent VAT.

The local Chinese seamless pipe market has followed a stable trend during the past seven days. Overall trading activity has been at low levels due to the rainy weather, while the annual sessions of China’s parliament and its advisory body held in Beijing have negatively influenced demand from the local construction sector. However, most traders are upbeat on the prospects for March and April since these months are usually good for sales. As for the week ahead, it is believed that domestic seamless pipe prices may indicate a stable trend, with some slight upticks also possible.  

The local Chinese welded pipe market has mostly moved sideways in the past week, though with some minor downticks also seen in some prices. Overall trading activity has remained at low levels. Due to the influence of environmental protection measures, both supply and demand have been slack. Certain traders have slightly reduced their quoted prices in order to close deals, but most traders still hold an optimistic view and so have kept their prices stable. As for the week ahead, it is believed that demand may improve slightly and that domestic welded pipe prices may move sideways, with the possibility of slight increases in some prices not to be excluded.

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

$1 = RMB 6.73