Local Chinese steel pipe prices mostly indicate slight increase

Local Chinese steel pipe prices have mostly risen slightly during the past week, though some seamless pipe prices have remained stable.

As of July 4, 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 $681/mt (RMB 4,683/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $693/mt (RMB 4,767/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 $647/mt (RMB 4,453/mt) and $641/mt (RMB 4,410/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have mostly moved sideways in the past seven days, though with some prices moving up by a small margin supported by increases in upstream billet prices. Overall trading activity has been at low levels, with downstream demand still weak during the current offseason. As for the week ahead, sentiment among most traders is still downbeat, while it is believed that local seamless pipe prices may indicate small fluctuations, with some slight declines possible.

The Chinese domestic welded pipe market has continued to follow a slight uptrend during the past week. Overall trading activity has been at low levels. Prices have been supported by the strong performances of raw material prices and steel strip prices and by the production restrictions implemented within the scope of environmental protection measures. As for the week ahead, it is believed that domestic welded pipe prices may indicate small fluctuations. 

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

$1 = RMB 6.87