As of July 11, 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 $692/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $736/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 $606/mt and $611/mt. All the above prices include 17 percent VAT.
Domestic seamless pipe prices in China have mostly been stable in the past week, though slight upticks have also been observed. Under the influence of upticks in prices of billet, prices of seamless pipes in some local markets moved up by small margins. However, downstream demand is still slack and most traders have had to keep their prices stable in order to attract deals. If billet prices continue to rise in the coming week, both mills and traders will have to adjust their prices in an upward direction. For the coming week, it is thought that local markets where prices are relatively low will see some upward movement, while local markets where prices are higher will trend sideways.
China's domestic welded pipe market has again moved up slightly during the past week, with prices rising by an aggregate of around RMB 100/mt over the past several weeks. However, the trading volume has failed to impress. It is believed that, without the support of demand in the off-season and if the upward movement of steel strip prices starts to weaken, then sooner or later domestic welded pipe prices will move down, with the decrease most likely to occur sooner rather than later. Welded pipe prices in China may soften slightly in the coming week.