Trading activity remains slack in local Chinese steel pipe market

The local Chinese steel pipe market has mostly followed a stable trend in the past week, with slight reductions in some prices also seen.

As of May 24, 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 $793/mt (RMB 5,067/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $816/mt (RMB 5,217/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 $695/mt (RMB 4,443/mt) and $688/mt (RMB 4,397/mt) respectively. All the above prices include 16 percent VAT.

The Chinese domestic seamless pipe market has mainly moved on a stable trend in the past seven days, with some slight downticks in certain markets due to the weakness of overall trading activity. Downstream demand has remained slack, but most traders chose to keep their prices unchanged due to the stability of billet prices. As for the coming week, however, traders may reduce their prices slightly due to the end of month, though decrease margins are not expected to be very large due to support from costs.

The Chinese domestic welded pipe market has also mostly followed a sideways trend in the past week, with slight reductions seen in some local markets. Slight increases observed in steel strip prices have not resulted in any upticks in the welded pipe market due to the weakness of trading activity. Inventories in the market are at low levels and traders are unwilling to purchase significant tonnages at present. As for the coming week, it is believed that the welded pipe market may increase by small margins if steel strip prices continue their strong trend.

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

$1 = RMB 6.39