Minor fluctuations in local Chinese steel pipe market

The local Chinese steel pipe market has indicated slight fluctuations in the past seven days.

As of March 28, 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 $721/mt (RMB 4,850/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $731/mt (RMB 4,917/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 $642/mt (RMB 4,320/mt) and $645/mt (RMB 4,273/mt) respectively. All the above prices include 16 percent VAT. ($1 = RMB 6.73)

Local Chinese seamless pipe prices have risen slightly during the past week. Overall trading activity has increased somewhat but is still at low levels. Upstream billet prices first increased in the given week but then softened, while seamless pipe traders were willing to raise their prices slightly but unwilling to follow the downward correction in billet prices considering that April is expected to be a good month for sales and that their profit margins are already tight. As for the week ahead, it is believed that domestic seamless pipe prices may again show minor fluctuations.

Chinese domestic welded pipe prices have mainly followed a slightly soft trend during the past week influenced by the declines in steel strip prices, while overall trading activity has been at normal levels. With demand improving, the decreases seen in welded pipe prices have been fairly small. As for the week ahead, it is believed that domestic welded pipe prices may indicate further slight decreases due to the weakness of upstream prices.

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

$1 = RMB 6.73