Trading activity has remained slack in the overall Chinese domestic steel pipe market, while sentiment among traders is downbeat as regards the market's future prospects.
As of November 7, 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 $693/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $737/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 $599/mt and $605/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe prices have followed a stable trend during the past week. The trading volume in the market has remained weak, while sentiment among traders is mostly negative. As for stock levels, traders are just purchasing in line with their needs, and so far there has been no news of stock replenishment activity by traders ahead of the winter. For the coming week, it is thought that the seamless pipe market in China will mainly continue to move on a sideways trend.
Average prices in the local Chinese welded pipe market have moved on a soft trend during the past seven days, though most of the decreases have been seen in southern China. As predicted in our previous report, welded pipe supplies have started to flow from the north of the country to the south, exerting a negative impact on prices in the latter region. Meanwhile, trading activity in the overall domestic welded pipe market is still slack. With the traditional sales season in September and October now over, traders hold a pessimistic view of the prospects for the market in the coming period. In this context, it is thought that there is still room for further decreases in domestic welded pipe prices taking into account the slackness on the demand side.