Local Chinese steel pipe market moves in upward direction

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

As of March 1, 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 $831/mt (RMB 5,267/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $841/mt (RMB 5,333/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 $720/mt (RMB 4,563/mt) and $715/mt (RMB 4,533/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has followed a mostly upward trend in the past seven days mainly due to higher billet prices, while overall trading activity is still at low levels as downstream demand from the construction sector still requires a few more days to recover after the recent holiday. Sentiment among traders is generally positive. As for the coming week, it is believed that domestic seamless pipe prices will continue to move in an upward direction.

The Chinese domestic welded pipe market has indicated a strong upward trend in the past week, while overall trading activity is at good levels. With most traders back in the market and with increases observed in upstream steel strip prices, the local welded pipe market has seen a strong performance both in terms of price and trade volume. Sentiment among traders is positive and they are seeking to build up their stocks. As for the coming week, it is believed that domestic welded pipe prices will continue to increase.

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

$1 = RMB 6.35