Local Chinese steel pipe prices indicate slight fluctuations

Local Chinese steel pipe prices have fluctuated slightly during the past seven days.

As of August 1, 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 $681/mt (RMB 4,700/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $688/mt (RMB 4,750/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 4,420/mt) and $634/mt (RMB 4,377/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have mostly moved up slightly in the past week. Overall trading activity has been at low levels, while upstream billet prices have indicated slight upticks amid production restrictions implemented within the scope of environmental measures. Downstream demand for seamless pipes has remained weak due to the hot weather conditions. As for the week ahead, it is believed that seamless pipe prices in China will mainly follow a stable trend.

Chinese domestic welded pipe prices have mostly been stable in the past week, though with slight downticks seen in certain local markets. Upstream steel strip prices have indicated minor fluctuations. Some traders chose to reduce their prices slightly due to the approach of the end of the month. As for the week ahead, considering the offseason and the weakness of both supply and demand, it is believed that local welded pipe prices may indicate some slight decreases.