Local Chinese steel pipe market mostly moves sideways

Prices in the local Chinese steel pipe market are mostly at the same levels compared to one week ago.

As of July 6, 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 $657/mt (RMB 4,467/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $664/mt (RMB 4,517/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 $584/mt (RMB 3,973/mt) and $576/mt (RMB 3,920/mt) respectively. All the above prices include 17 percent VAT.

In the past week, Chinese domestic seamless pipe prices first increased with the support of higher prices in the raw material and futures markets, but then moved back down as trading activity had begun to slacken significantly and so traders decided to reduce their prices. Prices are now mostly at similar levels compared one week earlier. For the coming week, it is believed that domestic seamless pipe prices will mainly just indicate minor fluctuations, with a slight downtrend possible.

Local welded pipe prices in China have generally remained stable in the past seven days, though with slight downticks seen in prices of certain products. Overall trading activity has been slack following the sharp increases recorded in the previous week. While the relatively high price levels of steel strip and raw materials have provided support for welded pipe price, the weakness of demand has caused some traders to reduce their prices slightly. Traders are somewhat pessimistic and are trying to keep their inventories at low levels in order to avoid risks. As for the coming week, it is believed that welded pipe prices could fluctuate on a soft trend.

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

$1 = RMB 6.80