Local Chinese steel pipe market mostly moves upwards 

The local Chinese steel pipe market has fluctuated on an upward trend during the past week.

As of September 7, 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 $838mt (RMB 5,450/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $833/mt (RMB 5,417/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 $705/mt (RMB 4,583/mt) and $701/mt (RMB 4,553/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.50)

The local Chinese seamless pipe market has mostly moved upwards in the past seven days, mainly due to the increases seen in billet prices. Overall trading activity for seamless pipes has remained weak, with buyers maintaining a wait-and-see stance ahead of the traditional peak season for sales. It is believed that domestic seamless pipe prices may still move in an upward direction in the week ahead.

Prices in the Chinese domestic welded pipe market have risen slightly in past week, with support from low inventory and the reduction in supply caused by environmental protection measures. Steel strip prices have also increased, providing additional support for welded pipe prices. As for the coming week, it is believed that domestic welded pipe prices may indicate further upward movement.

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

$1 = RMB 6.49