Local Chinese steel pipe market moves on overall upward trend

The local Chinese steel pipe market has moved on a rising trend during the past week.

As of February 23 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 $669/mt (RMB 4,600/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $671/mt (RMB 4,617/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 $570/mt (RMB 3,923/mt) and $572/mt (RMB 3,937/mt) respectively. All the above prices include 17 percent VAT. 

The Chinese domestic seamless pipe market has moved on an upward trend during the past seven days. Overall trading activity has improved compared to the previous week and is now at normal levels. Billet prices have increased and producers have continued to hike their seamless pipe prices, causing traders to raise their pipe prices further. It is believed domestic seamless pipe prices will continue to increase in the coming week but at a slower rate.

 

The local Chinese welded pipe market has also followed an increasing trend during the past week, mainly under the influence of higher prices of steel strip. At the same time, downstream demand has been slow to recover and trading activity is on the slack side, with buyers maintaining a wait-and-see stance and unwilling to build up stocks amid the current uptrend of prices. As for the week ahead, it is expected that domestic welded pipe prices will fluctuate at around the current high price levels. 

 

 

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

$1 = RMB 6.88