Local Chinese steel pipe prices fluctuate slightly

The local Chinese steel pipe market has continued to indicate slight fluctuations during the past week. 

As of April 4, 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 $718/mt (RMB 4,817/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $730/mt (RMB 4,900/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 $645/mt (RMB 4,327/mt) and $638/mt (RMB 4,280/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have mostly softened slightly in the past seven days. Overall trading activity has remained on the slack side even after the new reduced VAT rate entered into effect on April 1. Traders are mostly downbeat on the prospects for the market but think that demand may increase and so they have kept their prices stable. As for the week ahead, it is believed that domestic seamless pipe prices may again fluctuate on a slightly soft trend.

Chinese domestic welded pipe prices have moved sideways or risen slightly in the past week, with the upticks driven by increases in steel strip prices. Overall trading activity has improved after the new VAT rate came into effect. As for the coming week, it is believed that domestic welded pipe prices may fluctuate on a slight uptrend.

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

$1 = RMB 6.72