Prices increase in local Chinese steel pipe market

The local Chinese steel pipe market prices have kept an upward trend during past week.

As of August 23, 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 $771/mt (RMB 5,300/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $781/mt (RMB 5,367/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 $703/mt (RMB 4,827/mt) and $694/mt (RMB 4,770/mt) respectively. All the above prices include 16 percent VAT.

In the given week, domestic seamless pipe prices in China have mostly increased slightly, while overall trading activity has been remained weak. Upstream billet prices have continued a strong performance, leading seamless pipe prices to increase further. Meanwhile, low inventories for certain pipe types have also supported prices. As for next week, it is expected that domestic seamless pipe prices in China may increase slightly.

On the other hand, prices in the local Chinese welded pipe market have continued to increase and overall trading activity has slack in the given period. Upstream steel strip prices have kept their upward trend, while production volumes decrease amid environment measures. Therefore, although demand has remained weak, domestic welded pipe prices continued to increase. As for next week, it is expected that prices in the local Chinese welded pipe market will increase further, supported by increased costs and low supplies.

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

$1 = RMB 6.87