Local Chinese steel pipe prices soften slightly

The local Chinese steel pipe market has indicated a slight downtrend during the past week.

As of May 30, 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 $678/mt (RMB 4,667/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $690/mt (RMB 4,750/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 $635/mt (RMB 4,370/mt) and $629/mt (RMB 4,327/mt) respectively. All the above prices include 13 percent VAT.

The local Chinese seamless pipe market has moved down by a small margin during the past seven days. Overall trading activity has remained at low levels. Prices of billet and raw materials have increased. However, due to the end of the month and the low trading activity, most traders have chosen to make minor reductions to their prices in order to close more deals. Certain parts of China have been experiencing very hot weather conditions, which have strongly impacted the demand side. Most traders are currently pessimistic due to the off-season. Amid these conditions, it is believed that domestic seamless pipe prices may again soften by a small margin in the week ahead.

The Chinese domestic welded pipe market has mostly followed a slightly soft trend during the past week. Overall trading activity is at low levels due to the off-season and hot weather conditions. The upward trend of steel strip prices has provided some support for welded pipe prices. However, since demand has remained weak, most traders are willing to offer discounts or to reduce prices slightly in order to close more deals. The majority of traders hold a pessimistic view of the prospects for the coming period. As for the week ahead, it is believed that local welded pipe prices may move down slightly, with small fluctuations.

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

$1 = RMB 6.91