The Chinese domestic steel pipe market has mostly moved on a stable trend in the past seven days.
As of July 31, 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 $634/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $664/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 $549/mt and $556/mt respectively. All the above prices include 17 percent VAT.
Chinese domestic seamless pipe prices have moved on a stable trend during the past week. With billet prices seeing slower downward movement and with mills mostly keeping their seamless pipe quotations stable, the domestic seamless pipe market halted its downward movement and started to move on a sideways trend. Overall trading activity is still at a low level amid the current off-season. As for next week, it is believed traders may try to attract more deals through offering discounts, while there may be slight downticks in quotations for certain products.
The local Chinese welded pipe market has been mainly characterized by stability of prices in the past week, with minor decreases in prices of some products. The overall trading volume is low. Although steel strip prices have softened over the past two weeks during the off-season for business and with the approach of the end of the month, local traders are not willing to adjust their welded pipe prices. Considering the hot temperatures as well as the typhoon weather in coastal areas, the overall demand for welded pipes is quite limited. For the coming week, welded pipe prices will likely remain mostly stable, with slight decreases possible for certain pipe products.