Prices increase in local Chinese steel pipe market

Over the past week, domestic steel pipe prices in China have moved upwards.

As of August 9 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 $759/mt (RMB 5,177/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $776/mt (RMB 5,293/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 $684/mt (RMB 4,667/mt) and $677/mt (RMB 4,620/mt) respectively. All the above prices include 16 percent VAT.

In the given period, prices in the local Chinese seamless pipe market have showed an upward trend. Overall trading activity has been remained slack. Upstream billet prices have been influenced by rebar future market price and have showed a strong upward trend, which is main reason for the upward movement of domestic seamless pipe prices. Meanwhile, inventories of certain products have been limited which has also supported spot prices. As for the coming week, domestic seamless pipe prices in China are expected to mostly remain stable, though some upticks may also be seen.

Chinese welded pipe market prices have continued an upward trend during past seven days. Although the trading activities have remained at low level, with the support from upstream steel strip strong performance cause by limitation of production volume, welded pipe prices have moved upwards. In the coming week, domestic welded pipe prices in China are expected to continue their upward trend.

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

$1 = RMB 6.83