As of July 15, 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 stands at $912/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $920/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 $772/mt and $770/mt. All the above prices include 17 percent VAT.
Seamless pipe prices indicate stability
In the past week, the seamless pipe market in eastern China was generally stable. Traders have stated that they are maintaining a wait-and-see stance for the moment. Current overall market inventory is not at high levels, while traders are still trying to sell their goods. It is thought that the seamless pipe market in eastern China will see slight fluctuations in the coming period.
The seamless pipe market in northern China has risen slightly in the past week. Meanwhile, downstream demand has not changed much. Traders have indicated that, without downstream support, prices will not follow an increasing trend for long. Traders are seeking to maintain a lively sales turnover in order to keep inventories at low levels. In the short term, the northern Chinese seamless pipe market is expected to follow a fluctuating trend.
Seamless pipe prices have more or less been following a stable trend in the past one week in southern China, while the trading volume has continued to remain low. Traders have become more cautious with the high temperatures during the off-season. In the short term, the seamless pipe market in southern China still remains bearish. However, there does not seem to be much space for downward movement.
Weak sentiment in welded pipe market in China
With some northern pipe producing factories raising prices in the past week, the eastern Chinese welded pipe market has received some support. Price fluctuations are frequent in the current welded pipe market, and this causes hesitations among traders. Overall, it is thought that in the short term the eastern Chinese welded pipe market will continue to see fluctuations.
In the past week, the welded pipe market in northern China saw some slight fluctuations. Under the influence of rises in prices of billet and other materials, welded pipe producers in Tangshan raised their prices. However, under the pressure of the trade volume, there was still room for negotiation on actual transaction prices. Most market players think that the slight rise in prices is only short term and not of great significance.
The welded pipe market in southern China had seen a small downward the weekend before last. Since then the market has seen an upward correction. Market experts state that, with the low trade volume, there is insufficient support for further price increases. Market demand is relatively low because of the hot weather conditions. In this context, it is thought that manufacturers will maintain their stocks at low levels. Fluctuations are expected to be seen in the welded pipe market in southern China in the coming week.