Poor sentiment and slow activity in Chinese domestic steel pipe market

The Chinese domestic steel pipe market has seen slight decreases in seamless pipe prices in the past week, while local welded pipe prices have followed a stable trend. 
 
As of July 17, 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 $644/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $680/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 $559/mt and $566/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has witnessed slight downticks in prices during the past week, while overall trade volume has been slack. In the current off-season, downstream demand is unlikely to improve, while sentiment among traders is mostly very low and they hold a negative view of the future prospects for the market. As for the coming week, it is thought that the downward trend in the market may continue.
 
While the local Chinese welded pipe market has moved on a stable trend during the past seven days, there is still generally room for negotiation in actual transactions. Market activity has been on the slow side and traders have kept their prices unchanged as they consider that price cuts would not help to boost demand. Traders have also been keeping their inventories at low levels due to a lack of confidence regarding the market trend in the coming period. For the week ahead, it is thought that local welded pipe prices may just indicate minor fluctuations.