Local Chinese steel pipe prices mostly indicate slight softening

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

As of June 20, 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 $672/mt (RMB 4,600/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $684/mt (RMB 4,683/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 $626/mt (RMB 4,293/mt) and $620/mt (RMB 4,250/mt) respectively. All the above prices include 13 percent VAT.

Most local Chinese seamless pipe prices have continued their slight downtrend during the past seven days. Overall trading activity has been at low levels. Seamless pipe producers have made minor downward adjustments to their quotations, while traders are still focusing on sales. Downstream buyers are mainly maintaining a wait-and-see stance. As for the week ahead, it is believed that domestic seamless pipe prices may continue to be characterized by softness due to the current offseason.

Chinese domestic welded pipe prices have moved down further by small margins. Overall trading activity is weak due to the rainy weather and the offseason. Sentiment among traders is negative and they are mostly keeping their inventories at low levels. The rising price trend of upstream materials provides some support for welded pipe prices. As for the coming week, it is believed that domestic welded pipe prices may continue to soften slightly.

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

$1 = RMB 6.85