Stable trends in China’s seamless and welded pipe markets

The steel pipe markets in China have generally indicated sideways movement in the past week.
 
As of November 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 $671/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $749/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 $642/mt and $648/mt. All the above prices include 17 percent VAT.
 
The seamless pipe market in China has generally moved on a stable trend during the past week. Traders have been maintaining a wait-and-see stance, and as a result the trading volume has not been great. The previous rises in billet prices put pressure on mills to raise their pipe prices in the past week. In the given week, traders also moved to increase their seamless pipe prices, but quickly brought them back down again to previous levels in order to attract sales. Seamless pipe prices in China are expected to see some minor fluctuations in the coming week, with slight increases possible.
 
The domestic welded pipe market in China has followed a sideways trend during the past week. With demand still weak, traders are not inclined to build up their stocks, but prefer to focus on sales instead. Steel strip prices have lately indicated upward movement and so in certain local markets in China, small increases were witnessed in welded pipe prices. However, the overall trend in the national market is still stable. While it is difficult to predict the trend of China's domestic welded pipe market, it is thought that no large price movements will be seen in the coming week.