Local Chinese steel pipe prices indicate slight fluctuations

The local Chinese steel pipe market has seen slight fluctuations in prices during the past week.

As of September 6, 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 $783/mt (RMB 5,350/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $798/mt (RMB 5,450/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 $695/mt (RMB 4,750/mt) and $687/mt (RMB 4,693/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have mostly risen slightly during the past seven days as most traders have chosen to raise their prices by a small margin due to low output volumes and inventories. They hope that trading activity will improve in the coming period, though so far it has continued to remain at low levels. As for the week ahead, it is thought that domestic seamless pipe prices may be stable, with some upward movement also possible.

The local Chinese welded pipe market has mainly followed a slight downtrend during the past week, principally due to low trading activity and the negative impact on upstream steel strip prices of recent decreases in steel futures prices. Sentiment among traders is negative as demand has remained sluggish. As for the week ahead, it is believed that domestic welded pipe prices will just indicate slight fluctuations.

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

$1 = RMB 6.83