Seamless pipe demand still slow in China, welded pipe demand improves

In the past week, the Chinese domestic steel pipe market has mostly moved on a stable trend for seamless pipe prices, while it has seen a slight rebound in welded pipe prices.  

As of May 14, 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 $540/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $559/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 $421/mt and $427/mt respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has generally followed a stable trend during the past week, while overall trading activity still remains slow. The stability of billet prices has provided support for the sideways movement of seamless pipe prices. However, amid weak demand, most traders have a pessimistic view of the future prospects for the seamless pipe market. As for the coming week, it is believed that domestic seamless pipe prices will mostly continue their stable trend.

Slight rebounds have been observed in Chinese domestic welded pipe prices during the past week. Trading activity has improved and is now at normal levels, providing support for minor rises in traders' quotations. In addition, local steel strip prices have increased slightly in the past week, also providing support. For the coming week, domestic welded pipe prices are expected to be mostly stable, with some small fluctuations also possible.

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

$1 = RMB 6.20