Local Chinese steel pipe market moves in downward direction

Thursday, 29 March 2018 18:13:58 (GMT+3)   |   Shanghai
       

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

As of March 27, 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 $811/mt (RMB 5,100/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $827/mt (RMB 5,200/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 $685/mt (RMB 4,310/mt) and $678/mt (RMB 4,263/mt) respectively. All the above prices include 17 percent VAT.

Overall trading activity in the local Chinese seamless pipe market has been at low levels in the past seven days, while prices in the market have mostly softened, principally due to the decreases seen in upstream billet prices. Sentiment among traders is generally negative. Market inventories have declined and traders are generally reluctant to build up stocks in order to avoid risks. Domestic seamless pipe prices are expected to continue their soft trend in the week ahead amid the overall downward movement of steel prices in China at the current time.

Trading activity in the Chinese domestic welded pipe market has been slow in the past week, while prices in the market have indicated relatively large decreases against the backdrop of declines in raw material futures prices and in steel strip prices, and given the trade tensions between China and the US. Downstream demand remains weak, though it has improved slightly. Traders are generally willing to reduce prices in order to conclude deals. As for the coming week, Chinese domestic welded pipe prices may decrease further, though by smaller margins.

Product Name

Spec.

Category

City

Steel Plant/Origin

Price (RMB/mt)

Price ($/mt)

Weekly Change (RMB/mt)

Seamless pipe

Φ108 mm x 4.5 mm

20# (GB/T8162-1999)

Shanghai

Wuxi

4,900

779

↓100

Guangzhou

Shandong

5,300

843

↓50

Beijing

Angang

5,100

811

↓50

Average price

-

5,100

811

↓67

Φ219 mm x 6 mm

20# (GB/T8163-1999)

Shanghai

Zhenda

5,150

819

↓50

Guangzhou

Angang

5,350

851

0

Beijing

Shandong

5,100

811

↓50

Average price

-

5,200

827

↓33

Welded pipe

Φ48 mm x 3.25 mm

Q195-Q215

Shanghai

Tangshan

4,400

700

↓170

Guangzhou

Guangzhou

4,380

696

↓130

Beijing

Jinghua

4,150

660

↓100

Average price

-

4,310

685

↓133

Ф114 mm x 3.75 mm

Q215-Q235

Shanghai

Huaqi

4,310

685

↓170

Guangzhou

Guangzhou

4,380

696

↓130

Beijing

Zengzhou

4,100

652

↓150

Average price

-

4,263

678

↓150

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

$1 = RMB 6.29


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