Local Chinese steel pipe prices mostly remain stable

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

As of July 25, 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 $677/mt (RMB 4,650/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $684/mt (RMB 4,700/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 $644/mt (RMB 4,427/mt) and $638/mt (RMB 4,383/mt) respectively. All the above prices include 13 percent VAT.

The local Chinese seamless pipe market has moved on a sideways trend in the past seven days. Overall trading activity has been at low levels, though market inventory is also on the low side, which provides support for seamless pipe prices. Sentiment in the market during the current offseason is mostly negative. As for the week ahead, it is believed that domestic seamless pipe prices will mainly continue to move sideways.

Local Chinese welded pipe prices have mostly moved on a stable trend in the past week, though with some slight upticks seen in some parts of the country due to environmental protection measures. Nevertheless, most traders kept their prices unchanged as they wanted to attract demand. Overall trading activity has been sluggish. As for the week ahead, it is believed that domestic welded pipe prices may move sideways, but with some small downticks also possible.

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

$1 = RMB 6.88