The Chinese domestic steel pipe market has mostly moved on a stable trend in the past week, though slight price decreases have also been observed for some products.
As of March 20, 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 $674/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $715/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 $575/mt and $582/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has for the most part followed a sideways trend in the past seven days, though minor downticks have also been witnessed for certain products. The slight softening of billet prices has been the main factor contributing to these downticks. While the trading volume has improved, it is still smaller compared to the same month of previous years. Traders consider that current seamless pipe prices are at very low levels but they still prefer not to build up their stocks and are maintaining a wait-and-see stance. Supply remains higher than demand at present. It is thought that China's domestic seamless pipe market will likely see stable movement in the week ahead.
Chinese domestic welded pipe prices have also mainly indicated a stable trend in the past week, with some slight price declines also observed. Under the influence of softer steel strip prices, some mills and traders have chosen to reduce their prices slightly, also with the aim of increasing their sales volumes. Overall trading activity is showing signs of improvement. However, profit margins are quite small as welded pipe prices are at very low levels. Market sentiment is still somewhat downbeat. For the coming week, it is believed that the local Chinese welded pipe market will follow a stable trend.