Local Chinese steel pipe prices move sideways or fall slightly

Local Chinese steel pipe prices have either moved sideways or declined slightly during the past week.

As of May 16, 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 $693/mt (RMB 4,767/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $705/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 $639/mt (RMB 4,393/mt) and $632/mt (RMB 4,350/mt) respectively. All the above prices include 13 percent VAT. ($1 = RMB 6.88)

Chinese domestic seamless pipe prices have mostly remained stable in the past seven days, though some prices have softened slightly. Overall trading activity has been at low levels. Most downstream buyers are maintaining a wait-and-see stance, while upstream billet prices have only indicated minor fluctuations, and this has helped to provide some support for seamless pipe prices. As for the week ahead, it is believed that the domestic seamless pipe market may follow a mostly stable trend.

The local Chinese welded pipe market has moved on a slight downtrend during the past week, mainly due to low trading activity and the minor downticks seen in upstream steel strip prices. Market inventory has recently increased. Most traders are pessimistic given the weakness of demand and the macroeconomic situation. As for the week ahead, it is believed that domestic welded pipe prices may fluctuate on a slightly soft trend.

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

$1 = RMB 6.88