No demand improvement in local Chinese steel pipe market

The local Chinese steel pipe market has mostly moved on an upward trend in the past week.
 
As of August 11, 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 $493/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $516/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 $429/mt and $438/mt respectively. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has continued its upward trend during the past seven days. Increases in billet prices and in producers' seamless pipe quotations have caused traders to raise their prices also, even though trading activity has remained slack. It is expected that domestic seamless pipe prices will indicate a fluctuating trend in the coming week amid the ongoing sluggishness of demand.

Prices in the local Chinese welded pipe market have either moved sideways or indicated slight upticks in the past week. Demand has been quite low as the hot weather has had a negative impact on construction activity. The upticks in some prices have been due to the increases seen in steel strip prices. As for the week ahead, it is believed that supply volumes will decrease due to environmental protection measures and so prices may move on a slight uptrend.

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.65