Local Chinese steel pipe market starts to shut down ahead of holiday

The local Chinese steel pipe market has generally followed a stable trend in the past seven days. 

As of February 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 $404/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $422/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 $340/mt and $345/mt respectively. All the above prices include 17 percent VAT. 

The Chinese domestic seamless pipe market has trended sideways in the past week. In the last week before the Chinese New Year holiday, most traders have been leaving the market and so overall trading activity has been at very low levels. Some minor upticks have been observed in billet prices, seamless pipe traders have been unwilling to adjust their prices. The market is expected to continue its stable trend during the holiday and and also in the week after the holiday as time may be required for traders to return to the market. 

 

The local Chinese welded pipe market has also followed a stable trend amid very slack trading activity. It is believed that the market will continue to move sideways during the holiday and in the first week after the holiday also. 

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

$1 = RMB 6.58