As of September 16, 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 $920/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $927/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 $802/mt and $803/mt. All the above prices include 17 percent VAT.
Chinese seamless pipe market remains stable
The seamless pipe market in eastern China has remained stable in the past week. Billet prices were also stable which provided support for seamless pipe prices; however, the seamless pipe trading volume has remained at a low level, with most traders being cautious. With raw material costs high and downstream sales on the weak side, it is expected that the seamless pipe market in eastern China will follow a stable trend for a while. The northern seamless pipe market has also been stable. Some traders reflect that shipments are getting better, though overall market demand is still slack. Most traders lack confidence and prefer to maintain a wait-and-see stance. Experts expect the northern seamless pipe market to remain stable in the coming week. With the influence of slackness of demand and high costs, the southern China seamless pipe market has also been stable in the past week and is also likely to remain stable in the week ahead.
Sluggishness prevails in Chinese welded pipe market, prices stable
The welded pipe market in eastern China has been moving on a stable trend this week. Downstream demand has still not been released and market confidence remains at low levels. Currently, overall inventory in the east is a little on the low side. In the short term, the local welded pipe market is expected to indicate stable movement, perhaps with some slight fluctuations. The southern welded pipe market has also been very quite. High raw material costs have been placing pressure on producers, especially as sales have been quite slack. It seems hard for the local welded pipe market to rise and so stability with just very slight fluctuations is predicted for the week ahead. This week, the northern welded pipe market has mainly been stable, while prices of some specification have risen because of short supply. The trade volume has remained slack and a general wait-and-see mood prevails. Analysts state that, without the release of downstream demand, the market will not be able to rise and will probably follow a stable trend in the coming week.