The local Chinese steel pipe market has moved on a downward trend in the past seven days.
As of May 12 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 $505/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $523/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 $410/mt and $420/mt respectively. All the above prices include 17 percent VAT.
The Chinese domestic seamless pipe market has followed a downward trend in the past week. Overall trading activity has slackened significantly and is at low levels. The sharp drop in upstream billet prices is the main reason for the decline in seamless pipe prices. As for the coming week, it is believed that domestic seamless pipe prices will continue their downward trend though at a slower rate.
The local Chinese welded pipe market has decreased sharply during the past week. Overall trading activity remains at low levels. The large decreases in steel strip prices and low demand have been the main factors causing the sharp drop in welded pipe prices. It is believed domestic welded pipe prices may indicate slight fluctuations in the coming week after the strong decreases seen in the past week.