As of May 2, 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 $722/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $754/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 $633/mt and $637/mt. All the above prices include 17 percent VAT.
The Chinese seamless pipe market has indicated a softening in actual transaction prices over the past week, though quotations have mostly remained stable. Meanwhile, China's Labor Day Holiday has had a slight negative influence on the trading volume in the market. Seamless pipe mills have reported a minor decrease in demand levels. It appears hard for the domestic seamless pipe market to emerge from its current slackness at present. The market will most likely move on a stable or slightly downward trend in the coming week.
China's domestic welded pipe market has moved down slightly over the past week, while the softness of steel strip prices means that there is less support for the market trend. At the same time, activity in downstream industries is slower compared to the same time last year, and the overall trading volume for welded pipes is slack. Traders hold a negative view of the prospects for the market in the coming period. It is thought that prices will continue to fluctuate on a downward trend in the week ahead.