Trading activity remains weak in local Chinese steel pipe market

In the local Chinese steel pipe market, seamless pipe prices have continued to increase in the past week, while welded pipe prices first moved downwards at the start of the given week but later recovered.

As of August 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 $791/mt (RMB 5,267/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $786/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 $686/mt (RMB 4,567/mt) and $678/mt (RMB 4,513/mt) respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has continued its upward movement in the past seven days, mainly due to support from higher billet prices. Overall trading activity in the market is still weak, contributing to the pessimistic mood among traders. As for the coming week, it is believed that domestic seamless pipe prices may fluctuate in a slightly upward direction.

In the past week, the local Chinese welded pipe market has fluctuated in line with steel strip prices, first moving down and then starting to increase again. Overall trading activity has remained weak due to the traditional off-season for business and also due to the hot weather conditions. As for the week ahead, it is thought that domestic welded pipe prices may just indicate minor fluctuations.

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

$1 = RMB 6.66