Seamless pipe prices keep rising in China
2016-08-12 08:52:53 [Print]
BEIJING (Asian Metal) 12 Aug 16 - Seamless pipe prices continue to increase in China for the moment because of the short supply and rising raw materials’ prices, with a markup of around RMB200/t (USD30/t) in recent two weeks
A trader in Shanghai told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB3,100/t (USD466/t), rose by RMB50/t (USDD7.5/t) over last trading day.
Attributing the price rise to increasing raw materials’ prices and psychological factors, the source claimed that the price for the tubing blank has witnessed a total markup of 12.7% in recent one month, and it is likely to go on rising in accord with the short supply . Besides, prices for other major steel products like rebar and section steel all showed an upward trend recently due to price soar in the steel futures market, stimulating seamless pipe traders with low stocks to lift prices tentatively . Nevertheless, with the current sales volume of 30tpd against 1,800t in July, the source pointed out that the market still performs inactively after the price increase dragged by the insufficient demand from downstream industries. Holding a low stock of 1,000t at hand, 1/3 of that in the corresponding period of past years, he is cautious about supplementing the inventory seeing rising purchasing costs.
A trader in Guangzhou told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB3,200/t (USD481/t), up by RMB50/t (USD7.5/t) over last transaction day.
With the total sales volume of 200t in July, the source stated that the market continues to run slowly, and his current sales volume maintains at a low level of 10tpd, half of the projected level. “The progress of construction projects is slowed down obviously due to continuously heavy rain falls, and the market performance is hard to recover before the end of the rainy season in September,” added the source . However, as mills in Shandong province lifted ex-works prices for seamless pipe in succession due to rising production costs, traders like him have to follow suit . Holding a low stock of 200t at hand for the moment against 500t at the beginning of the year, the source adopts a wait-and-see attitude towards the market outlook and does not think the seamless pipe price will go up further in the short term.
A trader in Tianjin quoted RMB2,950/t (USD444/t) for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province, increased by RMB50/t (USD7.5/t) compared with last trading day.
According to the source, the short supply from mills is the main reason for the current price rise. Noted by him, seamless pipe producers are going through hardships facing higher production costs but insufficient orders, and more and more mills halt production temporarily, so that the supply is a little bit tight . In the meantime, with the central government endeavoring to reduce steel production capacity, traders held cautiously optimistic attitudes towards the market prospect, and moved prices up tentatively . With the sales volume of 8-10tpd for the moment, against 800t last month, he reported a tranquil market . Currently the source holds a low stock of 300t at hand, while it was 1,000t during the corresponding period of past years.
. Taking 20# Φ108mm*4.5mm GB/T8163 as an example, in East, South and North China, prices are RMB3,100/t (USD466/t), RMB3,200/t (USD481/t) and RMB2,950/t (USDD444/t) VAT included respectively, up by RMB50/t (USDD7.5/t) over the last trading day . Insiders foresee a firm price in coming 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 RMB3,100/t (USD466/t), rose by RMB50/t (USDD7.5/t) over last trading day.
Attributing the price rise to increasing raw materials’ prices and psychological factors, the source claimed that the price for the tubing blank has witnessed a total markup of 12.7% in recent one month, and it is likely to go on rising in accord with the short supply . Besides, prices for other major steel products like rebar and section steel all showed an upward trend recently due to price soar in the steel futures market, stimulating seamless pipe traders with low stocks to lift prices tentatively . Nevertheless, with the current sales volume of 30tpd against 1,800t in July, the source pointed out that the market still performs inactively after the price increase dragged by the insufficient demand from downstream industries. Holding a low stock of 1,000t at hand, 1/3 of that in the corresponding period of past years, he is cautious about supplementing the inventory seeing rising purchasing costs.
A trader in Guangzhou told Asian Metal that his price for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province is RMB3,200/t (USD481/t), up by RMB50/t (USD7.5/t) over last transaction day.
With the total sales volume of 200t in July, the source stated that the market continues to run slowly, and his current sales volume maintains at a low level of 10tpd, half of the projected level. “The progress of construction projects is slowed down obviously due to continuously heavy rain falls, and the market performance is hard to recover before the end of the rainy season in September,” added the source . However, as mills in Shandong province lifted ex-works prices for seamless pipe in succession due to rising production costs, traders like him have to follow suit . Holding a low stock of 200t at hand for the moment against 500t at the beginning of the year, the source adopts a wait-and-see attitude towards the market outlook and does not think the seamless pipe price will go up further in the short term.
A trader in Tianjin quoted RMB2,950/t (USD444/t) for 20# Φ108mm*4.5mm GB/T8163 from steel mills in Shandong province, increased by RMB50/t (USD7.5/t) compared with last trading day.
According to the source, the short supply from mills is the main reason for the current price rise. Noted by him, seamless pipe producers are going through hardships facing higher production costs but insufficient orders, and more and more mills halt production temporarily, so that the supply is a little bit tight . In the meantime, with the central government endeavoring to reduce steel production capacity, traders held cautiously optimistic attitudes towards the market prospect, and moved prices up tentatively . With the sales volume of 8-10tpd for the moment, against 800t last month, he reported a tranquil market . Currently the source holds a low stock of 300t at hand, while it was 1,000t during the corresponding period of past years.