Positive sentiment among traders in local Chinese steel pipe market

The local Chinese steel pipe market has for the most part moved upwards in the past week, though some prices have also moved sideways.

As of April 12, 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 $812/mt (RMB 5,100/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $836/mt (RMB 5,250/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 $696/mt (RMB 4,373/mt) and $689/mt (RMB 4,327/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has mainly moved sideways in the past seven days, though prices in some regions have increased. Overall trading activity is at good levels. Billet prices have edged upwards, providing support for seamless pipe prices. Sentiment among seamless pipe traders is positive amid the current increases in finished steel prices in China. As for the coming week, it is believed that domestic seamless pipe prices will continue to move sideways, with some upticks also possible.

The Chinese domestic welded pipe market has mostly moved upwards during the past week. Overall trading activity has improved and is now at normal levels. Traders are upbeat on the prospects for demand in the current month due to the better weather conditions. Upstream steel strip prices have remained stable. Against the backdrop of international uncertainties and lack of clarity regarding the trend of raw material prices, it is thought that domestic welded pipe prices may fluctuate in an upward direction in the week ahead.

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

$1 = RMB 6.28