No major fluctuations in local Chinese steel pipe prices

The local Chinese steel pipe market has been characterized by either sideways movement or minor fluctuations of prices during the past week.
 
As of March 2 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 $671/mt (RMB 4,617/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $673/mt (RMB 4,633/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 $572/mt (RMB 3,933/mt) and $573/mt (RMB 3,940/mt) respectively. All the above prices include 17 percent VAT.
 
The local Chinese seamless pipe market has mainly trended sideways in the past seven days, though with slight increases seen in certain product prices. Overall trading activity has improved compared to previous weeks and is now at normal levels. With the weather improving, downstream demand has recovered well. Meanwhile, market prices have also been supported by higher billet prices. Approaching the end of the month, most traders chose to keep their prices stable, but for the coming week it is believed there is still plenty of room for further increases in seamless pipe prices.
 
In the past week, Chinese domestic welded pipe prices first moved up due to the influence of environmental protection measures and reduced production volumes, but then moved back down as downstream buyers were unwilling to accept the increased prices of welded pipe, while traders also chose to reduce their prices slightly towards the end of the month in order to attract business. Overall trading activity in the market has remained slack. As for the week ahead, it is believed domestic welded pipe prices may just indicate slight fluctuations, though it will also be important to see whether trading activity improves.

$1 = RMB 6.88