Trading activity remains weak in local Chinese steel pipe market

Local Chinese steel pipe prices have either moved sideways or indicated slightly fluctuations during the past week.

As of December 14, 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 $865/mt (RMB 5,717/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $857/mt (RMB 5,667/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 $717/mt (RMB 4,740/mt) and $713/mt (RMB 4,710/mt) respectively. All the above prices include 17 percent VAT.

The Chinese domestic seamless pipe market has mostly moved sideways in the past seven days, though with slight price increases seen for certain products. Overall trading activity is at low levels during the current offseason. As for the week ahead, it is believed that domestic seamless pipe prices may remain mostly stable, but with some slight downticks also possible due to recent decreases in raw material prices.

Local Chinese welded pipe prices have mostly softened slightly in the past week, mainly due to reductions seen in steel strip prices. Overall trading activity has remained at low levels, while downstream demand is unlikely to improve due to bad weather and environment protection measures. The decrease margins of welded pipe prices have varied somewhat depending on inventory levels. As for the coming week, it is thought that the local Chinese welded pipe market may fluctuate on a slightly soft trend.

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

$1 = RMB 6.61