Local Chinese steel pipe prices fluctuate slightly depending on region and producer

Local Chinese steel pipe prices have either moved sideways or fluctuated slightly in the past week.

As of March 8, 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 $835/mt (RMB 5,283/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $845/mt (RMB 5,350/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 $718/mt (RMB 4,543/mt) and $713/mt (RMB 4,513/mt) respectively. All the above prices include 17 percent VAT.

Chinese domestic seamless pipe prices have mostly followed a stable trend in the past seven days, though with slight upticks seen in certain local markets. The softening seen in billet prices has not had much impact on the seamless pipe market as traders are mostly selling previously-bought inventories. Meanwhile, overall trading activity has improved slightly and is considered to be at normal levels, providing some support for seamless pipe prices. As for the week ahead, it is believed that seamless pipe prices may still follow a mostly stable trend, though minor downticks in prices may also be possible.

The local Chinese welded pipe market has mainly indicated a slight downtrend in the past week, principally due to the decreases observed in domestic steel strip prices. Overall trading activity is at normal levels, though downstream demand is not as good as expected and so traders have been more willing to reduce prices in order to attract business. It is expected that domestic welded pipe prices will resume a stable trend in the coming week as demand is expected to improve.

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

$1 = RMB 6.34