China's steel pipe market has witnessed increased stability in the past week, while trading activity has slackened.
As of July 25, 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 $694/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 $619/mt and $624/mt. All the above prices include 17 percent VAT.
In the past seven days, the Chinese domestic seamless pipe market has seen stability in prices. During the previous few weeks, seamless pipe prices in China had risen on the back of increases in prices of billet and iron ore. However, the trading volumes of seamless pipe have declined following the price upticks, while some traders have also started to offer discounts. For the moment, Chinese seamless pipe producers are not planning to reduce their prices and so domestic seamless pipe prices will most likely continue their stable trend during the coming week.
Chinese welded pipe prices have followed a slightly upward trend in certain local markets in the country in the past week. Similar to the situation in the seamless pipe market, price rises in the domestic welded pipe market have not been supported by trading volumes.
Accordingly, the upward movement of welded pipe prices has slowed down. Meanwhile, the hot weather has negatively influenced construction activity and demand for welded pipes. China's welded pipe market is expected to move sideways in the week ahead.