No positive developments in local Chinese steel pipe market

The local Chinese steel pipe market has mostly been characterized by slight downticks in the past week, though with some prices remaining stable also. 

As of November 19, 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 $438/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $445/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 $336/mt and $339/mt respectively. All the above prices include 17 percent VAT.
 
The local Chinese seamless pipe market has seen some slight decreases in prices in the past week, though with some prices also moving sideways. Upstream billet prices have moved on a soft trend, while domestic producers have reduced their seamless pipe ex-works prices. Meanwhile, downstream demand has slackened due to cold weather. It is believed that more slight decreases in prices will be seen in the coming week.

The Chinese domestic welded pipe market has seen a minor decrease in average prices in the past seven days. Prices of steel strip have softened, while downstream demand is weak amid colder weather and slower activity on construction sites. Traders are mostly downbeat on the future prospects for the market. It is expected that domestic welded pipe prices will fluctuate on a slight downtrend in the week ahead.

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

$1 = RMB 6.21