Trading activity still sluggish in local Chinese steel pipe market

The local Chinese steel pipe market has indicated both upward and sideways movement in the past week.

 As of October 19, 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 $826mt (RMB 5,467/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $821/mt (RMB 5,433/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 $681/mt (RMB 4,507/mt) and $676/mt (RMB 4,477/mt) respectively. All the above prices include 17 percent VAT.

Amid ongoing low demand, the local Chinese seamless pipe market has mostly moved sideways in the past seven days, though with slight upticks in prices seen for certain products due to support from slightly higher billet prices. Traders are mostly maintaining a wait-and-see stance. As for the coming week, it is believed that domestic seamless pipe prices may fluctuate slightly at around the current price levels.

In the past week, the Chinese domestic welded pipe market has mostly followed an upward trend, even though trading activity has remained at low levels. Higher steel strip prices were the main reason for the upward price movement, though downstream buyers of welded pipe have started to maintain a wait-and-see stance due to the price increases. Market inventories are at low levels, while supplies have decreased due to environmental measures. It is thought that domestic welded pipe prices in China may move up slightly in the coming week.

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

$1 = RMB 6.62