Local Chinese steel pipe prices mostly increase slightly

The local Chinese steel pipe prices have mostly moved up slightly during the past week.

The local Chinese steel pipe prices have mostly moved up slightly during the past week.

As of December 23 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 $949/mt (RMB 6,043/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $954/mt (RMB 6,070/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 $852/mt (RMB 5,423/mt) and $847/mt (RMB 5,393/mt) respectively. All the above prices include 13 percent VAT.

Chinese seamless pipe prices have moved sideways or up slightly in the past seven days. Overall trading activity has been weak due to the offseason. Prices of billet and other raw materials have increased, causing some traders to raise their seamless pipe prices. Supply is low, which also provides support for seamless pipe prices. As for the week ahead, it is believed domestic seamless pipe prices may mostly move sideways.

Local Chinese welded pipe prices have moved up by a small margin during the past week. On the upstream side, prices of steel strip and other raw materials have increased both in the spot and futures market, providing strong support for welded pipe prices. However, the weakness of demand has limited the increase margin. As for the week ahead, considering the support from the cost side but the weakness of demand, it is believed that domestic welded pipe prices may just indicate minor fluctuations.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.365