Local Chinese steel pipe market supported by cost-side increases

The local Chinese steel pipe market has mostly moved on an upward trend in the past week.

 

As of October 27, 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 $542/mt (RMB 3,667/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $550/mt (RMB 3,723/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 $444/mt (RMB 3,003/mt) and $419/mt (RMB 2,960/mt) respectively. All the above prices include 17 percent VAT. 

 

The local Chinese seamless pipe market has mostly moved on a rising trend in the past seven days but the increase margins have been relatively small. Overall trading activity has slackened. Increases in billet prices and low pipe inventory levels have been the main factors contributing to the upward movement of seamless pipe prices. As for the coming week, it is believed domestic seamless pipe prices may indicate slight increases. 

 

Prices in the Chinese domestic welded pipe market have either risen slightly or remained stable during the past week, while trading activity has remained at low levels. Higher raw material costs have been the main factor providing support for prices, With the weather getting colder, demand may weaken in the coming period. As for the week ahead, it is believed that local welded pipe prices may move sideways or soften slightly.  

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

 

$1 = RMB 6.78