Local Chinese steel pipe market moves up despite weak activity

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

As of February 16, 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 $653/mt (RMB 4,483/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $656/mt (RMB 4,500/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 $544/mt (RMB 3,730/mt) and $546/mt (RMB 3,747/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has moved on an upward trend during the past seven days, mainly due to the increases in billet prices. Activity in the market is still slack: traders have started to come back to the market after the holiday, but downstream demand still needs time to recover. As for the coming week, it is thought that domestic seamless pipe prices may move up slightly.

Local Chinese welded pipe prices have increased in the past week amid the upward movement of prices of steel strip and other finished steel products in China. Trading activity is still at low levels. While most traders hold a negative view of the future prospects for the welded pipe price trend, they consider that prices may move up further by a slight margin in the week ahead as traders have so far increased their prices by smaller margins compared to producers.  

 

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

$1 = RMB 6.86