Local Chinese steel pipe prices increase or move sideways

Prices in the local Chinese steel pipe market have either increased or moved sideways during the past week.

As of March 7, 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 $720/mt (RMB 4,833/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 $643/mt (RMB 4,317/mt) and $636/mt (RMB 4,270/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have mostly increased during the past seven days supported by rises in billet prices. Overall trading activity has been at normal levels. The National People's Congress and the Chinese People's Political Consultative Conference have negatively impacted both supply and demand volumes in the domestic steel market. However, most traders believe that demand will improve during the month of March. As for the week ahead, it is believed that domestic seamless pipe prices may move sideways, with some slight upticks also possible.

Local Chinese welded pipe prices have mostly followed a stable trend in the past week, with some minor increases also observed in certain markets. Overall trading activity has increased but is still at low levels. Upstream steel strip prices have risen slightly due to production cuts caused by environment protection measures. However, most traders have kept their prices stable as demand has not improved sufficiently. Most traders believe the demand side will improve in the coning period and they are optimistic on the prospects for March. As for the week ahead, it is believed that domestic welded pipe prices will mostly follow a stable trend with slight upticks in certain local markets.

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

$1 = RMB 6.71