Local Chinese steel pipe prices mostly indicate slight softening

Local Chinese steel pipe prices have mostly followed a slight downtrend during the past week.

As of January 3, 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 $686/mt (RMB 4,733/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $705/mt (RMB 4,867/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 $617/mt (RMB 4,257/mt) and $610/mt (RMB 4,210/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have followed a fluctuating trend during the past seven days. Overall trading activity has been at low levels. With the influence of low production volumes and low market inventory, prices of certain products have edged up slightly, whereas some traders have chosen to reduce their prices in order to close deals. As for the week ahead, against the backdrop of the weakness of demand and the low supply volume, it is believed that local seamless pipe prices may fluctuate on a slight downtrend. 

Chinese domestic welded pipe prices have softened slightly during the past week. Trading activity has continued at low levels due to the off-season and cold weather conditions. Most traders are willing to offer certain discounts in order to close deals. On the other hand, most downstream users have not yet started to build up stocks ahead of the Chinese New Year holiday as they consider that prices have not declined sufficiently. As for the coming week, it is believed that Chinese domestic welded pipe prices may continue to decline slightly.

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

$1 = RMB 6.87