Local Chinese steel pipe prices continue to rise

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

Chinese seamless pipe prices have continued their upward trend during the past week. Overall trading activity first increased and then slackened and is currently considered to be at normal levels. Prices of billet and other raw materials have continued to increase strongly, causing seamless pipe prices to follow suit. However, downstream buyers are now worried that seamless pipe prices may be too high and many of them are maintaining a wait-and-see stance. As for the week ahead, considering that support from raw material prices is still strong but that the demand side may weaken, it is believed that seamless pipe prices may indicate slight fluctuations.

Chinese domestic welded pipe prices have risen further in the past seven days, but the increase margin has been relatively small. Prices of steel strip and other raw materials have followed a strong uptrend, being the main factor causing welded pipe prices to rise also. However, with the demand side still weak due to the cold weather and the off-season, the increase margin has been relatively small. Traders are worried that prices are too high and are not willing to increase stock levels. As for the week ahead, considering the support from costs and the weakness of demand, it is believed that domestic welded pipe prices may just indicate small fluctuations.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.536