Trading activity still sluggish in local Chinese steel pipe market

Local Chinese steel pipe prices have either moved sideways or increased slightly during the past week.

As of September 20 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 $796/mt (RMB 5,450/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $813/mt (RMB 5,567/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 $704/mt (RMB 4,823/mt) and $696/mt (RMB 4,767/mt) respectively. All the above prices include 16 percent VAT. ($1 = RMB 6.85)

Local Chinese seamless pipe prices have mostly risen slightly during the past seven days mainly due to increases in billet prices, while overall trading activity has remained at low levels. Downstream demand is still weak and traders generally choose to maintain a wait-and-see stance. As for the week ahead, it is believed that local seamless pipe prices will move sideways or increase slightly.

Chinese domestic welded pipe prices have followed a stable trend in the past week, while overall trading activity is still slack. Downstream buyers prefer to wait and see, while market inventories are still at normal level. Recently prices of steel strip and other raw materials have rebounded following official clarification regarding production restrictions, and these upstream price increases may influence the trend of welded pipe prices. As for the week ahead, it is believed that domestic welded pipe market prices may move up slightly.

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

$1 = RMB 6.85