Chinese seamless pipe prices unlikely to go down in the near future
2016-07-20 08:40:30 [Print]
BEIJING (Asian Metal) 20 Jul 16 - Although prices for major steel products like HRC and rebar dropped these two days, those for seamless pipe kept generally stable in China supported by firm or rising purchasing costs. Taking 20# Φ108mm*4.5mm GB/T8163 as an example, in East, South and North China, prices are RMB2,850/t (USD425/t), RMB2,900/t (USD433/t) and RMB2,800/t (USD418/t) respectively. Insiders foresee a firm price in following several days.
A trader in Shanghai told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB2,850/t (USD425/t), similar to last trading day.
Holding a low stock of 1,000t at hand against 3,000t in the corresponding period of past years, the source does not think the seamless pipe price will decline in the short term considering the high purchasing costs, despite a slow market. With the sales volume of 30-40tpd against 100tpd in early March, the relatively peak season, he pointed out that as some tubing blank mills in Shandong and Henan province halt production in July-August due to the environmental protection policy, the supply for tubing blank, the direct raw material for seamless pipe is a little bit tight. Besides, seamless pipe producers like Ansteel and Baotou Steel either kept list prices for August production firm or raised them by RMB60-150/t (USD9-22/t). With the sales volume of 1,000t in June, the source keeps a keen eye on the market and does not plan to adjust prices in coming several days.
A trader in Guangzhou told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB2,900/t (USD433/t), equivalent to last transaction day.
The source does not plan to cut prices down, neither. Holding a low stock of 200t at hand against 500t at the beginning of the year, he claimed that as most local traders were cautious about supplementing inventories in past two months due to the downward price trend, currently the overall market inventory runs on a low level, restraining the seamless pipe price from decreasing to some extent. With the current sales volume of around 10tpd, half of the projected level, he confirmed that the market performed inactively due to the continuous rainfalls, and he does not think the market performance will make any progress before the end of the rainy season in September. He sold 400t in June.
A trader in Tianjin quoted RMB2,800/t (USD418/t) for 20# Φ108mm*4.5mm GB/T8163 from mills in Shandong province, stable over last trading day.
The source is a little bit uncertain about the market outlook seeing the rising purchasing costs but the slow market, and he refuses to build a large inventory, holding a stock of 1,000t at hand, against 5,000t when the market is prosperous. “The steel market is abnormal this year, and the price increase is mainly boosted by positive news and psychological factors, but the rigid demand remains insufficient,” he added, with the sales volume of 20-30tpd. In the meantime, the source thinks what matters is the demand, so no matter a price increase or decrease is unlikely to boost the market in the off-season. With the sales volume of 900t in June, he is watching the market cautiously at the moment.
A trader in Shanghai told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB2,850/t (USD425/t), similar to last trading day.
Holding a low stock of 1,000t at hand against 3,000t in the corresponding period of past years, the source does not think the seamless pipe price will decline in the short term considering the high purchasing costs, despite a slow market. With the sales volume of 30-40tpd against 100tpd in early March, the relatively peak season, he pointed out that as some tubing blank mills in Shandong and Henan province halt production in July-August due to the environmental protection policy, the supply for tubing blank, the direct raw material for seamless pipe is a little bit tight. Besides, seamless pipe producers like Ansteel and Baotou Steel either kept list prices for August production firm or raised them by RMB60-150/t (USD9-22/t). With the sales volume of 1,000t in June, the source keeps a keen eye on the market and does not plan to adjust prices in coming several days.
A trader in Guangzhou told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB2,900/t (USD433/t), equivalent to last transaction day.
The source does not plan to cut prices down, neither. Holding a low stock of 200t at hand against 500t at the beginning of the year, he claimed that as most local traders were cautious about supplementing inventories in past two months due to the downward price trend, currently the overall market inventory runs on a low level, restraining the seamless pipe price from decreasing to some extent. With the current sales volume of around 10tpd, half of the projected level, he confirmed that the market performed inactively due to the continuous rainfalls, and he does not think the market performance will make any progress before the end of the rainy season in September. He sold 400t in June.
A trader in Tianjin quoted RMB2,800/t (USD418/t) for 20# Φ108mm*4.5mm GB/T8163 from mills in Shandong province, stable over last trading day.
The source is a little bit uncertain about the market outlook seeing the rising purchasing costs but the slow market, and he refuses to build a large inventory, holding a stock of 1,000t at hand, against 5,000t when the market is prosperous. “The steel market is abnormal this year, and the price increase is mainly boosted by positive news and psychological factors, but the rigid demand remains insufficient,” he added, with the sales volume of 20-30tpd. In the meantime, the source thinks what matters is the demand, so no matter a price increase or decrease is unlikely to boost the market in the off-season. With the sales volume of 900t in June, he is watching the market cautiously at the moment.
