Slight fluctuations in Chinese domestic steel pipe market

Prices in the local Chinese steel pipe market have been characterized by minor fluctuations in past week.

As of March 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 $818/mt (RMB 5,167/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $828/mt (RMB 5,233/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 $703/mt (RMB 4,443/mt) and $698/mt (RMB 4,413/mt) respectively. All the above prices include 17 percent VAT.

The local Chinese seamless pipe market has seen a slight softening of prices in the past seven days due especially to decreases in billet prices, while overall trading activity in the market has remained weak, influenced by cold weather conditions. Traders are willing to offer certain discounts in order to conclude sales but buyers have mostly been maintaining a wait-and-see stance. As for the coming week, it is believed that domestic seamless pipe prices may mostly move sideways, with some slight downticks possible also.

In the past week, prices in the Chinese domestic welded pipe market have indicated slight upward or downward movements depending on the region of the country, while trading activity has been at low levels. Markets in some parts of the country saw minor decreases in prices as traders reduced prices in order to attract deals. Market inventories are at normal levels, while sentiment among traders has been downbeat. As for the week ahead, it is believed that domestic welded pipe prices may soften slightly due to the weakness of trading activity.

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

$1 = RMB 6.33