Slight fluctuations in local Chinese steel pipe market

The local Chinese steel pipe market has seen slight fluctuations in prices during the past week.

As of January 25, 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 $824/mt (RMB 5,217/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $827/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 $684/mt (RMB 4,327/mt) and $679/mt (RMB 4,297/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.33)

The local Chinese seamless pipe market has fluctuated on a slightly soft trend in most regions of the country during the past seven days, while trading activity has remained slack. With the approach of the Chinese New Year holiday, most traders are not eager to build up stocks, while pipe producers have made slight reductions to their prices in order to attract downstream demand. After these price reductions, trading activity has picked up slighty. Meanwhile, recent increases in billet prices have provided some support for seamless pipe prices. As for the coming week, it is thought that local seamless pipe prices may rise slightly considering that demand may improve a little.

Prices in the Chinese domestic welded pipe market have rebounded slightly in the past week due to support from higher steel strip prices. Overall trading activity is still sluggish, while traders are unwilling to purchase at the increased price levels. However, since the Chinese New Year holiday is approaching, demand in the market may increase in the weeks ahead. As for the coming week, it is believed that domestic welded pipe prices may move up slightly.

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

$1 = RMB 6.32