Minor fluctuations in sluggish Chinese domestic steel pipe market

The local Chinese steel pipe market has been characterized by just minor fluctuations in prices during the past week.

 

As of November 24, 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 $618/mt (RMB 4,183/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $615/mt (RMB 4,167/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 $476/mt (RMB 3,223/mt) and $476/mt (RMB 3,220/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.77)

 

The local Chinese seamless pipe market has mostly moved on a stable trend in the past seven days, though with some slight downticks also seen. Upstream billet prices have been stable, while demand for seamless pipes from the downstream side has been weak due to the cold weather. Traders are seeking to conclude sales and some of them may reduce their prices slightly as prices are at relatively high levels. As for the coming week, it is believed that domestic seamless pipe prices will remain mostly stable, with slight fluctuations possible. 

Welded pipe prices in the Chinese domestic spot market have fluctuated by small margins in the past week. Overall trading activity has remained at low levels, with rainfall and snowy weather conditions negatively impacting downstream demand. Nevertheless, welded pipe producers have increased their quoted prices. Traders’ inventories are at low levels at present. As for the week ahead, it is thought that domestic welded pipe prices will continue to indicate small fluctuations. 

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

$1 = RMB 6.92