Trading activity still lackluster in local Chinese steel pipe market

The local Chinese steel pipe market has mostly been characterized by some softness in prices during the past week.  

 

As of December 17 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 $409/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $427/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 $323/mt and $318/mt respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has mostly followed a downward trend in the past seven days. Overall trading activity has remained slack and is unlikely to improve before the end of year. Traders are trying to sell as much as possible under pressure from tightness of funds, but price reductions have little impact on business given the prevailing cold weather conditions. Meanwhile, upstream billet prices have softened a little. Local seamless pipe prices may soften slightly in the week ahead.

 

The Chinese domestic welded pipe market has seen stable movement of many product prices in the past week, though with slight decreases in prices also observed. Trading activity is still sluggish, while upstream steel strip prices have indicated minor downticks. Excess supply remains a problem in the welded pipe market. It is believed that domestic welded pipe prices will be mainly stable in the coming week. 

 

 

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

$1 = RMB 6.48