Local Chinese steel pipe prices mostly indicate slight softening

Local Chinese steel pipe prices have mostly softened slightly during the past week.

As of May 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 $686/mt (RMB 4,717/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $698/mt (RMB 4,800/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 $637/mt (RMB 4,383/mt) and $631/mt (RMB 4,340/mt) respectively. All the above prices include 13 percent VAT.

Chinese domestic seamless pipe prices have declined by small margins during the past seven days. Overall trading activity has remained at low levels. Most pipe producers and traders have chosen to reduce their quoted prices slightly in order to close more deals. Low demand and high market inventories have been the main factors contributing to the soft trend. As for the week ahead, it is believed that local seamless pipe prices may move sideways or move down slightly as the end of the month approaches.

Local Chinese welded pipe prices have either remained unchanged or moved down by a small margin in the past week. Overall trading activity has been weak. The rising price trend of upstream steel strip and other raw materials has prevented significant decreases in welded pipe prices during the current off-season, but most traders are pessimistic due to the weakness of demand. 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 6.92