Local Chinese steel pipe prices fluctuate

During the past week, local Chinese steel pipe prices first decreased but rebounded later in the week. 

As of December 6, 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 $699/mt (RMB 4,850/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $713/mt (RMB 4,950/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 $616/mt (RMB 4,277/mt) and $610/mt (RMB 4,230/mt) respectively. All the above prices include 16 percent VAT.

Chinese domestic seamless pipe prices are still lower compared to one week ago despite the rebound seen in recent days following the positive outcome of the US-China talks in Buenos Aires. Overall trading activity has remained at low levels due to the current off-season and this has limited the room for upward movement of prices. As for the week ahead, it is believed that domestic seamless pipe prices may be characterized by a soft trend.

Local Chinese welded pipe prices are slightly higher on week-on-week basis following a rebound in recent days similar to that observed in the seamless pipe market. Overall trading activity is still at low levels, with downstream demand remaining weak since the weather is getting colder and as many construction sites have halted their activities. As for the week ahead, it is believed that the local welded pipe market may resume a decreasing trend.

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

$1 = RMB 6.90