As of September 5, 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 $700/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $735/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 $623/mt and $633/mt. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has continued its stable trend in the past week, while the trading volume has remained weak. Although domestic billet prices have maintained their soft trend, Chinese seamless pipe producers have not changed their quotations. Sentiment among traders is generally positive as they believe that demand will improve in September and October. It is thought that Chinese domestic seamless pipe prices will mostly remain stable in the coming week, while prices may start to trend up in subsequent weeks.
Local Chinese welded pipe prices have moved down very slightly in the past week under the influence of downticks in steel strip prices and the ongoing slackness of trading activity. Confidence among traders is currently low, while demand has not yet improved even though weather conditions are now more favorable. It is believed that some downward room will exist for Chinese domestic welded pipe prices in the coming week if feedstock costs continue to be characterized by a soft trend.