Slack trading activity in Chinese steel pipe market

As of June 27, 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 $689/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $732/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 $601/mt and $606/mt. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has followed a stable trend during the past week, while the trading volume has remained low. During the current off-season, downstream demand has slackened by varying degrees in different sectors. At the same time, however, prices of billet have increased. The local seamless pipe market is expected to maintain its stable trend in the coming week.
 
The local Chinese welded pipe market has indicated a slight downward trend during the past week. Under the influence of rises in steel strip prices, some upticks had previously been witnessed for domestic welded pipe prices. However, without support from demand, market prices have returned to their previous levels during the past week. The demand side is still characterized by slackness, while the current hot weather is influencing sales volumes. In order to increase sales, some traders are offering small discounts. For the short term, there still appears to be room for further decreases in China's domestic welded pipe market.