Local Chinese steel pipe prices continue to decline

Local Chinese steel pipe prices have continued their downward trend during the past week.

As of November 11, 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 $998/mt (RMB 6,400/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $999/mt (RMB 6,410/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 $889/mt (RMB 5,703/mt) and $884/mt (RMB 5,673/mt) respectively. All the above prices include 13 percent VAT.

Chinese seamless pipe prices have followed a downward trend during the past week. Overall trading activity has been weak. Prices of billet and other raw material prices recently declined sharply, causing seamless pipe prices to follow suit. Meanwhile, demand is weak, which also exerts pressure on seamless pipe prices. As for the week ahead, considering the weakness of demand, it is believed that seamless pipe prices may continue their downward trend.

Chinese welded pipe prices have indicated significant decreases during the past week. Prices of steel strip and other raw materials have fallen sharply both in the spot and futures markets, causing welded pipe prices to follow. The mood among traders is mostly one of panic and they have been ready to offer lower prices in order to close more deals but trading activity has  weak. As for the week ahead, it is believed that welded pipe prices may move in a downward direction.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.415