The trend in the Chinese domestic steel pipe market has varied between stability and a slight decline in the past week, while the overall trading volume has remained quite low.
As of February 13, 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 $688/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $726/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 $581/mt and $588/mt respectively. All the above prices include 17 percent VAT.
China's domestic seamless pipe market has been moving on a stable trend during the first week back after the Spring Festival holiday. The demand side is not back to normal yet and the trading volume is quite low. Traders still need time to observe the market, while they are also waiting for new price announcements by producers. For the coming week, it is thought that the local Chinese seamless pipe market may continue its sideways movement.
The local Chinese welded pipe market has been characterized by a slight softening during the past week. Although prices of steel strip, the feedstock for welded pipes, have moved up slightly in recent days, traders still hold welded pipe inventory purchased before the recent holiday, and so the increase in steel strip prices has not provided any support for welded pipe prices, especially given the weakness of the demand side. For the week ahead, traders are expected to focus on sales of stocks and prices may indicate a further slight softening.