Stability in Chinese steel pipe market ahead of Spring Festival

The Chinese market for steel pipes, both seamless and welded, has remained stable in the past week, while activity has become sluggish as the Spring Festival holiday draws closer.
 
As of January 31, 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 $764/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 $635/mt and $643/mt. All the above prices include 17 percent VAT.
 
The Chinese domestic seamless pipe market has moved on a stable trend during the past week. The lack of a significant change in billet prices has contributed to the stability of the seamless pipe market. Meanwhile, the trading volume in the seamless pipe market is low due to the approach of the holiday and traders are postponing their purchases as they expect to see an uptrend in prices in the post-holiday period. It is believed the seamless pipe market will maintain its stable trend ahead of the holiday.
 
Welded pipe prices in the Chinese domestic market are unchanged from last week, while sales activity in the market has almost stagnated with the approach of the holiday. The traders still left in the market are mostly busy with preparing previously-booked orders and collecting cash. The demand side is unwilling to build up stocks, while supply volumes in the market are low as well. It is thought that the stable trend in China's welded pipe market will continue in the week left before the holiday.