Local Chinese steel pipe prices mostly soften slightly

Local Chinese steel pipe prices have mostly indicated a slight softening during the past week.

As of June 13, 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 $673/mt (RMB 4,633/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $686/mt (RMB 4,717/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 $627/mt (RMB 4,317/mt) and $621/mt (RMB 4,273/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have mainly indicated minor decreases during the past seven days. Overall trading activity has remained at low levels. Traders are mostly pessimistic and are unwilling to increase stocks during the off-season period. As for the week ahead, it is believed that domestic seamless pipe prices may continue to decline slightly.

Chinese domestic welded pipe prices have indicated minor decreases during the past week. Overall trading activity has been at low levels. Rainy weather continues to influence the demand side. Upstream steel strip prices have rebounded in recent days, which may provide some support for welded pipe prices. As for the week ahead, it is believed that welded pipe prices may indicate slight fluctuations.

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

$1 = RMB 6.92