Local Chinese steel pipe market still awaits demand recovery

The local Chinese steel pipe market has mostly indicated stable movement during the past week, though with some slight price increases seen also.

 

As of February 9, 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 $634/mt (RMB 4,367/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $639/mt (RMB 4,400/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 $526/mt (RMB 3,617/mt) and $525/mt (RMB 3,613/mt) respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has seen some slight increases in prices in the past seven days. Both supply and demand have been at very low levels following the Chinese New Year holiday, while the upticks in prices have been due to the minor increases in prices of billet. As for the coming week, it is believed that domestic seamless pipe prices may just indicate minor fluctuations. 

The Chinese domestic welded pipe market has mostly followed a stable trend during the past week, while demand has yet to recover after the holiday. The small increases in steel strip prices have not affected welded pipe prices as demand for the latter product is very weak and traders mainly hold inventory bought before the holiday. Trading activity is expected to pick up in the week ahead, while inventories are at high levels. Just slight fluctuations in prices are anticipated in the coming week. 

 

 

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

 

$1 = RMB 6.88