Local Chinese steel pipe prices fluctuate slightly 

The local Chinese steel pipe prices have been characterized by small fluctuations during the past week.

As of October 18, 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 $782/mt (RMB 5,427/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $799/mt (RMB 5,543/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 $691/mt (RMB 4,793/mt) and $683/mt (RMB 4,737/mt) respectively. All the above prices include 16 percent VAT. ($1 = RMB 6.94)

Chinese domestic seamless pipe prices have for the most part softened slightly in the past seven days. Overall trading activity has been at good levels. While billet prices in China have generally moved sideways, seamless pipe producers have reduced their quotations slightly, causing most traders to follow suit. Downstream demand has improved recently since construction activity has speeded up before the cold winter weather starts to arrive. Also, the slight reduction in seamless pipe prices has also provided support for trading activity. Market inventories are at normal levels. As for the coming week, it is believed that domestic seamless pipe prices may rebound slightly. 

In the past week, local Chinese welded pipe prices have mostly risen slightly due to recent increases in steel strip prices, while overall trading activity for welded pipes has improved and is at normal levels. Traders are mostly upbeat about the market prospects for the remainder of October. Accordingly, as for the week ahead, it is believed that welded pipe prices may continue to move up slightly.

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

$1 = RMB 6.94