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 December 27, 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 $691/mt (RMB 4,750/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $711/mt (RMB 4,883/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 $629/mt (RMB 4,323/mt) and $622/mt (RMB 4,277/mt) respectively. All the above prices include 16 percent VAT.

During the past week, local Chinese seamless pipe prices have followed a mostly stable trend but with slight upticks in prices also seen. Overall trading activity has remained at low levels due to the off-season. Upstream billet prices have recently moved upwards due to low production volumes amid environmental protection measures, and these increases have provided support for the slight increases seen in some seamless pipe prices. Market inventories have declined, also providing support for seamless pipe prices. As for the week ahead, it is believed that domestic seamless pipe prices may follow a mostly stable trend.

In the past seven days, due to the off-season and cold weather, overall trading activity has remained at low levels in the Chinese domestic welded pipe market where prices have risen slightly influenced by the increases in steel strip prices. According to market sources, due to the weak trading activity, most traders have chosen to follow the trend of upstream product prices. As for the week ahead, it is believed that domestic welded pipe prices may fluctuate on an upward trend amid production restrictions due to environmental protection measures, and also as downstream buyers may start to build up stocks for the winter season, .   

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

$1 = RMB 6.87