Local Chinese steel pipe market moves on soft trend

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

As of March 15, 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 $824/mt (RMB 5,200/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $835/mt (RMB 5,267/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 $704/mt (RMB 4,440/mt) and $699/mt (RMB 4,410/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.31)

 Local Chinese seamless pipe prices have softened in the past seven days, mainly due to decreases in billet prices. Trading activity has improved to normal levels after the decreases in prices. As for the coming week, it is thought that domestic seamless pipe prices may move sideways as demand is also expected to improve.  

The Chinese domestic welded pipe market has also moved down during the past week, due to the weakness of prices of steel strip and other raw materials. Overall trading activity has remained weak, especially as prices have continued to soften. Traders have been more willing to reduce prices in order to attract deals. However, in the past two days, steel strip prices have rebounded slightly, which may provide support for welded pipe prices. Meanwhile, demand may improve in the coming two weeks. As for the week ahead, it is believed that domestic welded pipe prices may move sideways or rebound slightly.

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

$1 = RMB 6.32