Sluggish trading activity in local Chinese steel pipe market

Chinese domestic steel pipe prices have either moved sideways or risen slightly during the past week. 

As of February 8, 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 $823/mt (RMB 5,200/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 $693/mt (RMB 4,377/mt) and $688/mt (RMB 4,347/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.32)

The local Chinese seamless pipe market has followed a stable trend in the past seven days. Overall trading activity has been on the sluggish side, while most downstream buyers do not have a strong need to build up their stocks. Some traders have already left the market and trading activity is expected to continue to slacken ahead of the Chinese New Year holiday. As for the week ahead, local seamless pipe prices are expected to maintain their stable trend as the holiday approaches.

Chinese domestic welded pipe prices have mostly increased slightly during the past week, while overall trading activity has been at low levels. Traders who are selling in the spot market have been trying to push up prices since they believe the market will show an improvement after the holiday. since there is only one week before holiday, the trade volume will keep decreasing. Domestic welded pipe prices are expected to be mainly stable in the coming week, while trading activity is foreseen to slacken further ahead of the holiday.  

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

$1 = RMB 6.32