Local Chinese steel pipe prices mostly move sideways

The local Chinese steel pipe market has been mostly stable in the past week, though with slight upticks seen in some prices.

As of January 17, 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 $697/mt (RMB 4,717/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $716/mt (RMB 4,850/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 4,240/mt) and $619/mt (RMB 4,193/mt) respectively. All the above prices include 16 percent VAT.

In the past seven days, overall trading activity has been at low levels in the local Chinese seamless pipe market as downstream demand has remained weak and has slackened further amid the current cold weather conditions, while prices have been mostly stable with some slight increases also observed due to support from higher billet prices. Most traders have kept their prices stable instead of raising them in order to close more deals. As for the week ahead, it is believed that domestic seamless pipe prices may follow a stable trend, with slight downticks also possible due to the weakness of demand.

The local Chinese welded pipe market has followed a sideways trend in the past week against a backdrop of the ongoing slackness of trading activity and minor increases in steel strip prices. Downstream buyers and traders believe that current welded pipe prices are still at high levels and they are unwilling to increase their stocks at present. As for the week ahead, it is thought that Chinese domestic welded pipe prices may mostly move sideways, with minor decreases not to be ruled out.

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

$1 = RMB 6.77