Poor activity in local Chinese steel pipe market

The local Chinese steel pipe market has mostly moved sideways in the past seven days, though with some slight upticks in prices observed also.   

 

As of June 30 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 $461/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 $394/mt and $397/mt respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.4)

 

The local Chinese seamless pipe market has mostly remained stable in the past week. Upstream billet prices have increased, while seamless pipe producers have made some increases in their quoted prices. However, local seamless pipe traders have kept their prices stable amid slack trading activity due to adverse weather conditions. As for the coming week, the market may trend down slightly due to the weakness of demand.

The Chinese domestic welded pipe market has trended up slightly in the past week, mainly due to increases in steel strip prices. Demand is still slack and traders are keeping their inventories at low levels in order to avoid risks. The market is expected to just indicate slight fluctuations or minor downticks in the week ahead.

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

$1 = RMB 6.64