In the past seven days, the Chinese domestic steel pipe market has seen a stable trend for seamless pipe prices and a slight downward trend for welded pipe prices.
As of December 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 $567/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $599/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 $495/mt and $500/mt respectively. All the above prices include 17 percent VAT.
The local Chinese seamless pipe market has followed a stable trend during the past seven days. With demand at poor levels and unlikely to pick up amid the cold winter weather conditions, domestic pipe producers have mostly kept their prices unchanged. Some traders with plentiful inventories have offered certain discounts for large tonnages, while keeping their offer prices stable. It is expected that seamless pipe prices in the Chinese domestic market will remain on their stable trend in the coming week.
The Chinese domestic welded pipe market has indicated a slight decreasing trend in the past week, while transaction activity has been slack. The purchasing activity of downstream users has declined, while some traders have large inventories in hand and are eager to sell products and bring in cash before the end of the year, thereby contributing to the soft trend in the welded pipe market. It is expected that the local Chinese welded pipe market will continue to see a slight correction in the week ahead.