Local Chinese steel pipe prices move sideways or rise slightly

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

As of May 9, 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 $701/mt (RMB 4,783/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $714/mt (RMB 4,867/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 $649/mt (RMB 4,423/mt) and $642/mt (RMB 4,380/mt) respectively. All the above prices include 13 percent VAT.

The local Chinese seamless pipe market has followed a stable trend during the past week. Overall trading activity has been at low levels both during and after the Labor Day holiday. Sentiment among most traders is negative, but since producers have kept prices stable, traders are unwilling to reduce their prices. As for the week ahead, it is believed that seamless pipe market prices may show a mostly stable trend, with slight downticks also possible due to the slackness of demand and possible increases in inventory.

Chinese domestic welded pipe prices have mostly followed a slight uptrend during the past seven days. Trading activity had increased before the Labor Day holiday, but returned to normal levels after the holiday. Upstream steel strip prices rose by a small margin during the holiday period and this was the main factor supporting the upward movement of welded pipe prices. However, in order to close more deals, traders are now willing to offer certain discounts. Meanwhile, production volumes will be reduced in certain parts of the country because of environmental measures and this may provide support for welded pipe prices. 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 6.82