Local Chinese steel pipe prices continue their downward trend

The local Chinese steel pipe market has followed a decreasing trend during the past week.

As of November 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 $756/mt (RMB 5,250/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $772/mt (RMB 5,357/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 $659/mt (RMB 4,573/mt) and $652/mt (RMB 4,527/mt) respectively. All the above prices include 16 percent VAT.

Due to the off-season and cold weather conditions, overall trading activity has been at very low levels in the past seven days in the local Chinese seamless pipe market where prices have moved on a soft trend, influenced also by the weakness of prices of billet and other steel product. Demand has continued to slacken and is unlikely to record any improvement. Both traders and pipe producers are under pressure and are willing to reduce their prices in order to close deals. As for the week ahead, it is believed that domestic seamless pipe prices may continue their soft trend.

Amid weak trading activity, Chinese domestic welded pipe prices have indicated a declining trend during the past week, influenced by decreases in prices of steel strip and raw materials. Meanwhile, demand has continued to decrease since construction activity has been negatively by the cold weather conditions. As for the coming week, it is expected that the local welded pipe market prices may continue its downward trend.  

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

$1 = RMB 6.94