Local Chinese steel pipe prices move sideways or rise slightly

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

As of July 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 $750/mt (RMB 5,107/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $767/mt (RMB 5,223/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 $660/mt (RMB 4,493/mt) and $653/mt (RMB 4,447/mt) respectively. All the above prices include 16 percent VAT.

In the past seven days, trading activity has remained weak in the local Chinese seamless pipe market which has mostly followed a stable trend though prices in some parts of the country have risen slightly due to minor upticks in billet prices. Most traders chose to keep their prices stable due to the weakness of demand. As for the coming week, it is thought that the domestic seamless pipe market will mostly follow a stable trend.

The local Chinese welded pipe market has mainly moved up slightly in the past week, while overall trading activity has remained weak. Production restrictions in central China have resulted in increases in steel strip prices, which have been the main factor contributing to the slight uptrend in welded pipe prices, though increase margins have been limited by the slackness of demand, while some traders have kept prices stable in order to close more deals. It is believed that domestic welded pipe prices will be mostly stable in the week ahead, with some slight upticks also possible.

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

$1 = RMB 6.81