Local Chinese steel pipe prices mostly move sideways

The local Chinese steel pipe market has mostly followed a stable trend during the past week.

As of January 31, 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 $708/mt (RMB 4,750/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $723/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 $635/mt (RMB 4,263/mt) and $628/mt (RMB 4,217/mt) respectively. All the above prices include 16 percent VAT.

The local Chinese seamless pipe market has moved on a stable trend during the past week. Overall trading activity has been at low levels since most traders and downstream users have already left the market ahead of the Chinese New Year holiday. Market inventories have not increased strongly during the past several weeks, which may provide support for market prices after the holiday. It is believed that domestic seamless pipe prices will maintain their stable trend before and during the holiday.

The Chinese domestic welded pipe market has followed a mostly stable trend in the past seven days, though with some slight upticks in prices also seen due to minor increases in steel strip prices. On the downstream side, construction sites have generally halted their activities before the holiday and so demand has been at very low levels. Most traders have exited the market ahead of the holiday and so trading activity has now almost come to a stop. The domestic welded pipe market in China is expected to follow a stable trend before and during the holiday period.

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

$1 = RMB 6.71