Weak activity in local Chinese steel pipe market

The local Chinese steel pipe market has seen both upward and downward movement of prices in the past week, depending on products.  

 

As of June 16, 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 $451/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $469/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 $388/mt and $392/mt respectively. All the above prices include 17 percent VAT. 

The local Chinese seamless pipe market has moved on a downward trend in the past seven days. Trading activity remains weak, while traders have chosen to reduce their quotations in order to attract business. As for the coming week, domestic seamless pipe prices are expected to soften slightly.

The Chinese domestic welded pipe market has mostly indicated a slight uptrend in the past week, mainly due to increases in steel strip prices. However, overall trading activity is still sluggish, also due to the negative impact of weather conditions. The local welded pipe market is expected to show just slight fluctuations in the week ahead.  

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

$1 = RMB 6.58