Local Chinese steel pipe prices soften slightly or move sideways

Local Chinese steel pipe prices have either softened slightly or moved sideways in the past seven days.

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 $679/mt (RMB 4,667/mt), with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $691/mt (RMB 4,750/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 $644/mt (RMB 4,427/mt) and $638/mt (RMB 4,383/mt) respectively. All the above prices include 13 percent VAT.

Overall trading activity has been at low levels in the past week in the local Chinese seamless pipe market where prices have mostly moved sideways, though some prices have also decreased slightly due to the soft trend of billet prices. Most prices have remained stable as traders generally believe that reducing prices will not spark an increase in trading activity given the current slackness of demand. As for the week ahead, it is believed that the domestic seamless pipe market may fluctuate in a downward direction.

The Chinese domestic welded pipe market has mainly moved down slightly in the past week. Overall trading activity has been at low levels due to the current off-season. Without support from prices of steel strip and other raw materials, traders are mostly downbeat on the prospects for the market. They have mostly been focusing on sales and have also been willing to offer discounts. As for the week ahead, it is believed that domestic welded pipe prices may continue their slightly soft trend.

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

$1 = RMB 6.87