Local Chinese steel pipe prices mostly follow a downward trend

Local Chinese steel pipe prices have mostly followed a downward trend during the past week.

As of November 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 $773/mt (RMB 5,377/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $788/mt (RMB 5,483/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 $680/mt (RMB 4,727/mt) and $674/mt (RMB 4,687/mt) respectively. All the above prices include 16 percent VAT.

The Chinese domestic seamless pipe market has seen both sideways and slightly downward movements of prices during the past seven days. Overall trading activity has been at normal levels. Upstream billet prices have shown a stable trend, while certain steel pipe producers have reduced their prices slightly. As a result, some traders have also chosen to make slight downward adjustments to their quotations. As for the week ahead, it is believed that Chinese domestic seamless pipe prices may soften slightly.

Local Chinese welded pipe prices have mostly followed a soft trend during the past week amid decreases in producers’ steel pipe prices. Overall trading activity has been at low levels. Traders mostly hold a negative view of the future prospects for the market since the traditional sales season is over and so demand may continue to slacken. As for the week ahead, it is believed that local Chinese welded pipe prices may indicate further decreases. 

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

$1 = RMB 6.95