Trading activity still lackluster in local Chinese steel pipe market

Prices in the local Chinese steel pipe market have either moved sideways or softened in the past week.

 As of January 4, 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 $856/mt (RMB 5,567/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $849/mt (RMB 5,517/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 $698/mt (RMB 4,540/mt) and $694/mt (RMB 4,510/mt) respectively. All the above prices include 17 percent VAT.

Amid ongoing sluggish trading activity, the Chinese domestic seamless pipe market has mostly followed a downward trend in the past seven days, with prices in eastern China indicating larger decreases compared to other regions due to increased supply as local producers have resumed production after the New Year holiday. In other regions, traders just reduced their prices slightly or kept them stable as they were reluctant to make significant cuts to prices given the slackness of trading activity. During January, most downstream buyers may need to purchase and increase their inventories before the Chinese New Year holday, but, since prices are still at high levels, most buyers are choosing to wait and see. As for the coming week, it is believed that the local seamless pipe market may fluctuate on a soft trend. 

The local Chinese welded pipe market, which is still characterized by slack trading activity, has followed a stable trend the during past week, supported by the stable movement of steel strip prices. Downstream buyers mostly continue to maintain a wait-and-see stance as they consider that prices are on the high side. It is thought that domestic welded pipe prices may indicate a declining trend in the week ahead. 

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

$1 = RMB 6.50