The Chinese domestic steel pipe market has mostly moved on a stable trend in terms of seamless pipe prices in the past week while slight decreases have been witnessed in prices of welded pipes.
As of May 22, 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 $658/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $699/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 $579/mt and $582/mt respectively. All the above prices include 17 percent VAT.
Chinese domestic seamless pipe prices have mostly indicated a stable trend during the past week, while the overall trading volume still fails to impress. Even though billet prices have softened slightly, most traders have chosen to keep prices stable and adopt a wait-and-see stance. Sentiment among traders is still negative due to the unsatisfactory demand situation. It is believed that domestic seamless pipe prices in China will mainly remain stable in the coming week.
Local Chinese welded pipe prices have weakened slightly in the past seven days. Downstream demand is still slack, while steel strip prices have continued to decrease, with these factors contributing to the pessimism in the market. Market players state that the trading volume this year is lower than in the last few years and so traders are disappointed and have been ready to make some reduction in prices in order to boost sales and bring in funds. It is thought that the slight downtrend in domestic welded pipe prices will continue in the week ahead.