Local Chinese steel pipe prices move on rising trend 

The local Chinese steel pipe market has followed an upward trend during the past week.

As of September 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 $790/mt (RMB 5,410/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $807/mt (RMB 5,527/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 $704/mt (RMB 4,823/mt) and $696/mt (RMB 4,767/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have moved upwards during the past seven days, supported by increases in billet prices and in futures prices of raw material and steel. Overall trading activity has remained at low levels at the beginning of the traditional busy season for sales. As for the week ahead, it is believed that domestic seamless pipe prices may fluctuate on an upward trend.

The Chinese domestic welded pipe market has followed an increasing trend during the past week, with support from higher raw material futures prices and also from the reduction in supply caused by environmental protection measures, Trading activity is at low levels, while traders are still focusing on sales and are unwilling to build up their stocks. As for the week ahead, it is believed that domestic welded pipe prices may indicate small fluctuations.

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

$1 = RMB 6.85