Trading activity at low levels in local Chinese steel pipe market

Prices in the local Chinese steel pipe market have either moved sideways or down slightly in the past week.

As of May 10, 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 $803/mt (RMB 5,083/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $827/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 $700/mt (RMB 4,430/mt) and $692/mt (RMB 4,383/mt) respectively. All the above prices include 16 percent VAT.

In the past seven days, the local Chinese seamless pipe market has mostly followed a stable trend with slight increases seen in eastern parts of the country due to environment protection measures. Overall trading activity is still at low levels. Billet prices first moved upwards in the past week and then declined, but with limited impacts on the seamless pipe market. As for the coming week, it is thought that the local seamless pipe market may mostly follow a stable trend with some slight decreases also possible due to the weakness of demand.

The local Chinese welded pipe market has followed a slightly soft trend in the past week mainly due to the influence of decreases in steel strip prices, while overall trading activity has been weak. Traders have been willing to offer discounts or reduce prices in order to conclude deals. As for the week ahead, the local welded pipe market may continue its slightly soft trend.

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

$1 = RMB 6.33