No major change in local Chinese steel pipe prices

Local Chinese steel pipe prices have been more or less stable during and since the holiday period, with just some minor fluctuations also seen.

As of October 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 $792/mt (RMB 5,467/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $809/mt (RMB 5,583/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 $692/mt (RMB 4,777/mt) and $684/mt (RMB 4,720/mt) respectively. All the above prices include 16 percent VAT.

Local Chinese seamless pipe prices have followed a stable trend both during and since the holiday period. Overall trading activity has been at normal levels. Inventory increased during the holiday, while production volumes have lately been on the rise. Amid rising pressure from the supply side, it is believed that domestic seamless pipe prices may follow a soft trend in the week ahead.

Chinese domestic welded pipe prices have been characterized by slight fluctuations, while overall trading activity has remained at low levels. Certain traders have chosen to make slight reductions to their prices in order to close more deals, while prices in certain local markets in China have risen slightly due to low inventory. As for the week ahead, it is believed that domestic welded pipe prices may indicate a soft trend as supply volumes continue to increase.

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

$1 = RMB 6.90