Weak demand and stable prices in Chinese steel pipe market

As of December 30, 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 $840/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $874/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 $717/mt and $719/mt. All the above prices include 17 percent VAT.
 
The seamless pipe market in China has followed a stable trend this week, though with some small fluctuations. Meanwhile, trading activity in the market has become more sluggish. The Chinese seamless pipe market is also expected to be stable in the coming week, possibly with slight fluctuations.
 
The welded pipe market in China has seen stable movement in quoted offers in the past week, though some slight softening has been witnessed in actual transaction prices. Feedstock prices have also been stable in the past week. A wait-and-see atmosphere currently prevails in the Chinese welded pipe market. Meanwhile, winter stock levels are lower compared to last year. Construction activity has been hit by the cold weather and so demand levels have already hit bottom. Most traders will borrow in the New Year in order to purchase additional stock and so demand is expected to improve. In the coming week, China's welded pipe market is likely to follow a stable trend. There is a greater possibility that prices may start to rise in the weeks ahead.