Local Chinese steel pipe prices indicate slight fluctuations

Local Chinese steel pipe prices have indicated minor fluctuations during the past week.

As of August 15, 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 $673/mt (RMB 4,733/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $683/mt (RMB 4,800/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 $616/mt (RMB 4,333/mt) and $610/mt (RMB 4,290/mt) respectively. All the above prices include 13 percent VAT.

Chinese domestic seamless pipe prices have indicated slight fluctuations in an upward direction during the past seven days. Overall trading activity has remained weak, though most traders have chosen to raise their prices amid low market inventories and given the increases announced by pipe producers. As for the week ahead, it is believed that domestic seamless pipe prices may revert to a soft trend given the weakness of demand and declines in raw material prices.

Local Chinese welded pipe prices have softened slightly during the past week. Overall trading activity has been at low levels due to the current off-season and adverse weather conditions. Most welded pipe producers have slightly reduced their quotations since upstream prices have recently declined both in the futures and spot markets. As for the week ahead, it is believed that, given the low demand and the weakness of upstream prices, domestic welded pipe prices may continue their downward movement.

  $1 = RMB 7.03