No major price movements in local Chinese steel pipe market

Prices in the local Chinese steel pipe market have either moved sideways or indicated slight fluctuations in the past week.

 

As of May 18, 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 $605/mt (RMB 4,167/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $627/mt (RMB 4,317/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 $524/mt (RMB 3,610/mt) and $521/mt (RMB 3,590/mt) respectively. All the above prices include 17 percent VAT. 

The Chinese domestic seamless pipe market has mostly moved on a stable trend in the past week, though some rare downticks in prices have also been seen. Overall trading activity has been weak. In the given week, upstream billet prices first decreased before moving back up. As for the coming week, it is believed that domestic seamless pipe prices may indicate minor fluctuations and could rebound slightly. 

 

The local Chinese welded pipe market has moved up slightly on a fluctuating trend in the past week. Trading activity has been weak and downstream demand has been at low levels, while steel strip prices have increased with the support of higher steel futures prices. Welded pipe supply volumes have continued to decrease amid environmental protection measure, while many producers have limited their production volumes. As for the week ahead, it is thought that producers will resume normal production and that downstream demand may improve slightly, while welded pipe prices may fluctuate on a slightly upward trend. 

 

 

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

 

$1 = RMB 6.89