Local Chinese steel pipe market still sees poor activity

The Chinese domestic steel pipe market has mostly moved on a stable trend in terms of seamless pipe prices in the past week, while welded pipe prices have indicated a declining trend. 
 
As of January 15, 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 $562/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $594/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 $447/mt and $457/mt respectively. All the above prices include 17 percent VAT.
 
During the past seven days, the Chinese domestic seamless pipe market has mostly moved sideways, with some slight decreases also seen in some local markets. The minor downticks observed in billet prices and the ongoing slackness of trading activity in the seamless pipe market have contributed to the abovementioned slight declines. Traders are also trying to keep their inventories at low levels. The Chinese seamless pipe market is expected to follow a stable trend in the coming week.
 
China's local welded pipe market has again moved on a downward trend during the past week, while trading activity is at very low levels. With the ongoing declines in steel strip prices, traders believe that there is further room for the downward movement of welded pipe prices in the coming period. There is still limited demand from the construction sector, while activity is slack coming close to the Chinese New Year. For the coming week, it is thought that domestic welded pipe prices may again follow a downward trend.