Local Chinese steel pipe prices mostly increase

Local Chinese steel pipe prices have mostly moved upwards during the past seven days, with some prices also moving sideways.

As of June 27, 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 4,633/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $686/mt (RMB 4,717/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 $639/mt (RMB 4,393/mt) and $632/mt (RMB 4,350/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have remained stable in some regions of the country and have increased in others during the past week. Overall trading activity has remained at low levels. With billet prices rising and environmental protection measures impacting production in central China districts, prices in some local markets have indicated an upward trend. However, most traders have chosen to keep their prices stable in order to close more deals. As for the week ahead, it is believed domestic seamless pipe prices may indicate some slight upticks.

Chinese domestic welded pipe prices have moved upwards during the past seven days. Overall trading activity has remained weak. The upward movements of steel strip prices and raw material futures prices as well as environmental protection measures impacting production in central China districts have provided support for welded pipe prices. Trading volumes have failed to improve due to the offseason. As for the week ahead, it is believed that welded pipe market prices may fluctuate on an upward trend due to low production volumes and weak demand.

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

$1 = RMB 6.88