Overall demand still slack in local Chinese steel pipe market

In the past week, the Chinese steel pipe market has mostly been characterized by sideways movement, while overall demand has remained slack.
 
As of July 4, 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 $689/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $732/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 $601/mt and $608/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has followed a stable trend in the past week. Although billet prices have indicated upward movement, traders have kept their prices stable as demand is very weak. In this context, traders have concerns regarding their profit margins. Market sentiment is still on the cautious side. It is thought that seamless pipe prices in the local Chinese market will also follow a sideways trend during the coming week.
 
The local welded pipe market in China has mostly indicated a stable trend in the past week, though prices of certain products have moved up with the support of steel strip prices. The demand side is still characterized by slackness. However, due to pressure from costs, it is difficult to avoid some rises in prices. At the same time, most traders are keeping their stocks at low levels since it is uncertain whether the welded pipe market will continue to see upticks with support only from the cost side. It is believed that China's domestic welded pipe market may fluctuate in a slightly upward direction in the coming week.