Local Chinese steel pipe prices keep rising

Local Chinese steel pipe prices have followed an upward trend during the past week.

As of October 14, 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 $1,051/mt (RMB 6,767/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $1,052/mt (RMB 6,777/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 $975/mt (RMB 6,280/mt) and $970/mt (RMB 6,250/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have increased during the past seven days. Overall trading activity has weak. With the influence of electricity restrictions in most parts of China, supply volumes have remained low, giving strong support to seamless pipe prices, while higher billet prices have also given support. As for the week ahead, considering the supply volume as well as demand have recovered slightly, it is believed that seamless pipe prices may fluctuate on a slight uptrend.

Chinese domestic welded pipe prices have continued their upward trend during the past week. Prices of steel strip and other raw materials have increased, providing support for welded pipe prices. Demand and trading activity have remained weak due to the high levels of welded pipe prices. As for the week ahead, considering that electricity supply restrictions have kept supply volumes at a low level and provided strong support for welded pipe prices, it is believed that welded pipe prices may fluctuate in an upward direction.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.441