Sluggish trading activity in local Chinese steel pipe market

Local Chinese steel pipe prices have been characterized by stable movement or minor fluctuations during the past week.

As of February 1 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 $827/mt (RMB 5,200/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $832/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 $688/mt (RMB 4,327/mt) and $683/mt (RMB 4,297/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.29)

The local Chinese seamless pipe market has mostly seen a stable trend in the past seven days, though with slight reductions in some prices. Overall trading activity is still at low levels. Certain big traders are starting to build up inventories for the holiday, though most traders are still maintaining a wait-and-see stance. Downstream demand from the construction sector has mostly come to a halt ahead of the holiday. Upstream billet prices have fluctuated by small margins in the past week. As for the coming week, it is believed that domestic seamless pipe prices may follow a stable trend.

Prices have fluctuated slightly in the local Chinese welded pipe market in the past week. Prices in some local markets rose by a small margins with the support of steel strip prices, while in other local markets traders reduced their prices slightly in order to attract downstream demand. Overall trading activity is still at low levels, while market inventory has increased. As for the week ahead, it is thought that local welded pipe prices may indicate a stable trend, accompanied by some slight downticks also.

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

$1 = RMB 6.31