The Chinese steel pipe market has moved on a downward trend for both seamless and welded pipe products during the past week.
As of September 4, 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 $616/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $642/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 $531/mt and $539/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has followed a downtrend in the past seven days due to significant decreases in billet prices and the ongoing slackness of trading activity. Traders have been reducing their seamless pipe prices, though producers have so far sought to keep their prices stable. Sentiment in the market is negative and traders are just purchasing in line with their needs. As for the coming week, it is believed that domestic seamless pipe prices will remain on their soft trend.
Local Chinese welded pipe market prices have declined by relatively large margins during the past week against the backdrop of sluggish trading activity and declines in steel strip prices. Both mills and traders have reduced their prices but this has not sparked any improvement in demand. The outlook for the market appears gloomy and it is thought that the declining trend in the market will continue in the coming week.