Local Chinese steel pipe market rises on back of higher feedstock prices

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

As of April 14 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 $490/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $505/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 $438/mt and $449/mt respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has seen significant increases in prices in the past seven days, mainly on the back of sharp increases in billet prices. However, overall trading activity has remained slack in the past week. As a result, it is thought that domestic seamless pipe prices will indicate a fluctuating trend in the week ahead. 

The Chinese domestic welded pipe market has moved on a strong upward trend during the past week on the back of increases in steel strip prices. Overall trading activity has been at normal levels. Downstream demand for welded pipes has slackened slightly after the price increases. It is believed that domestic welded pipe prices will indicate just minor increases in the coming week. 

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

$1 = RMB 6.48