Local Chinese steel pipe prices mostly follow slight uptrend

The local Chinese steel pipe market has mostly followed a slight uptrend in the past week.

As of December 7, 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 $862/mt (RMB 5,700/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $855/mt (RMB 5,650/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 $725/mt (RMB 4,793/mt) and $721/mt (RMB 4,763/mt) respectively. All the above prices include 17 percent VAT.

Despite weak trading activity, the local Chinese seamless pipe market has fluctuated on a slight upward trend in the past seven days mainly due to significant increases in the prices of billet and raw materials. Downstream buyers are generally maintaining a wait-and-see stance and keeping their inventories at low levels in order to avoid risks, while demand is unlikely to increase amid environmental measures and colder weather conditions. As for the coming week, it is believed that domestic seamless pipe prices may mostly move sideways.

The Chinese domestic welded pipe market has mostly moved up slightly in the past week, with the price increases in question much smaller compared to those seen in prices of rebar, steel strip and raw materials in China. Traders are showing greater willingness to increase their prices and profit margins as compared to producers. As for the coming week, with market activity at low levels, it is thought that domestic welded pipe prices may mostly remain stable or just indicate slight fluctuations.

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

$1 = RMB 6.62