Local Chinese steel pipe prices soften slightly

Local Chinese steel pipe prices have mostly softened slightly during the past week, with some fluctuations.

As of December 16, 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 $948/mt (RMB 6,033/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $952/mt (RMB 6,060/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 $848/mt (RMB 5,397/mt) and $843/mt (RMB 5,367/mt) respectively. All the above prices include 13 percent VAT.

Local Chinese seamless pipe prices have moved sideways or softened slightly in the past seven days. Overall trading activity has been weak. Billet prices and steel futures prices first increased but then softened, though many seamless pipe producers and traders kept their quoted prices stable given the very weak state of demand. Supply has increased recently, which exerts pressure on seamless pipe prices. As for the week ahead, it is believed that seamless pipe prices may indicate a minor softening.

Chinese domestic welded pipe prices have shown small fluctuations. Upstream steel strip prices have increased, but most producers and traders choose to increase or reduce their quoted prices according to their trading activity during this offseason. Most traders hold a negative view due to the winter season and the weak demand situation. As for the week ahead, it is believed that welded pipe prices may soften slightly.

Seamless pipe prices

 All the above prices include 13 percent VAT.

Welded pipe prices

All the above prices include 13 percent VAT.

$1 = RMB 6.364