Trading activity fails to recover in local Chinese steel pipe market

Local Chinese seamless pipe prices are mostly unchanged compared to pre-holiday levels, though with some upticks also seen, while welded pipe prices have moved upwards in the same period.

As of October 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 $828mt (RMB 5,450/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $823/mt (RMB 5,417/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 $679/mt (RMB 4,467/mt) and $674/mt (RMB 4,437/mt) respectively. All the above prices include 17 percent VAT. ($1 = RMB 6.58)

The Chinese domestic seamless market has mostly remained stable compared to before the long National Day Holiday (October 1-8), though some prices have edged upwards. Overall trading activity remains weak after the holiday. While billet prices in China increased during the holiday period, they have softened in recent days, and so local seamless pipe traders have mostly chosen to keep their prices stable since billet prices are now almost at the same levels as before the holiday. Nevertheless, some traders have raised their seamless pipe prices slightly to see how the downstream side will react. As for the coming week, it is believed that domestic seamless pipe prices may fluctuate within a small range at current price levels.

Local Chinese welded pipe prices have increased compared to before the holiday, while trading activity is still weak due to rainy weather conditions and also due to the impact of environmental protection measures. On the upstream side, steel strip prices had increased during the holiday and have since been fluctuating but without indicating the significant decreases seen in the billet market, and so they have continue to provide some support for welded pipe prices. As for the coming week, it is believed that domestic welded pipe prices in China may fluctuate on a slightly soft trend. 

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

$1 = RMB 6.59