Slight downward movements still witnessed in Chinese pipe market

As of July 19, 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 $769/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $819/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 $658/mt and $666/mt. All the above prices include 17 percent VAT.
 
The Chinese seamless pipe market has varied between stability and slight downward movement in the past week. Demand remains low and most traders have adopted a wait-and-see stance. Current profit margins are limited and so it is difficult to foresee large downward movements in prices. Observers believe the current trend of stability and slight downward corrections will continue for another while.    
 
The welded pipe market in China has seen a slight downward trend in the past week. Demand for welded pipes is quite slack and so traders are trying to reduce their inventory, thereby resulting in softer prices. It is thought that prices are unlikely to recover in the short term given the current off-season. For the coming week, the slight downward trend is expected to continue in the market.