Local Chinese steel pipe prices fluctuate slightly or move sideways

In the past week, local Chinese steel pipe prices have either fluctuated slightly or moved sideways.   

As of February 28, 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 $714/mt (RMB 4,783/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $726/mt (RMB 4,867/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 $641/mt (RMB 4,297/mt) and $634/mt (RMB 4,250/mt) respectively. All the above prices include 16 percent VAT.

The Chinese domestic seamless pipe market has mostly moved sideways in the past seven days, with some slight downticks also seen. Overall trading activity has increased with downstream buyers back from their holidays and is now at normal levels. Market inventories have increased, while upstream billet prices have softened slightly, contributing to the minor reductions seen in some prices. As for the week ahead, it is believed that domestic seamless pipe prices may fluctuate on a slight uptrend. 

Local Chinese welded pipe prices have moved up slightly during the past week. Overall trading activity has been at low levels, especially in southern parts of China, due to rainy weather conditions. Steel strip prices have indicated small increases, providing support for the price rises seen in the welded pipe market. As for the week ahead, it is believed that domestic welded pipe prices will continue their slight upward movement.

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

$1 = RMB 6.70