Local Chinese steel pipe prices move sideways or fluctuate slightly

Prices in the local Chinese steel pipe market have either moved sideways or fluctuated slightly during the past week.

As of April 26, 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 $804/mt (RMB 5,083/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $828/mt (RMB 5,233/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 $698/mt (RMB 4,413/mt) and $691/mt (RMB 4,367/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has mostly remained stable in the past week, though with slight reductions seen in prices in certain parts of the country. Overall trading activity is slack. Although pipe producers’ quotations have risen slightly against the backdrop of increases in prices of billet and other steel product prices, traders are unwilling to increase their prices due to the weakness of activity and as the end of the month is approaching. Downstream buyers are generally maintaining a wait-and-see stance. As for the coming week, it is believed that local seamless pipe prices may fluctuate on a slight uptrend. 

The Chinese domestic welded pipe market has moved on a slight uptrend in the past week. Influenced by increases in prices of steel strip and raw materials, domestic welded pipe prices have chosen to raise their prices, but increase margins have been small as the end of the month is approaching and as trading activity has hardly given any support to market prices. Downstream buyers are mostly maintaining a wait-and-see stance as the Labor Day holiday is drawing closer. As for the coming week, it is thought that welded pipe prices may mostly continue to move up slightly.

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

$1 = RMB 6.32