Chinese seamless pipe market slow
2023-04-20 08:19:15 [Print]
BEIJING (Asian Metal) 20 Apr 23 - The domestic seamless pipe market performs inactively at the moment, and prices decrease in most regions. Presently, the mainstream prices of seamless pipe 20# Ф219*6mm GB8163 hover at RMB5,300/t (USD768/t), RMB5,350/t (USD776/t) and RMB5,300/t (USD768/t) D/P respectively in warehouses Guangzhou, Chengdu and Tianjin, with the former two down by RMB50/t (USD7/t) and the latter one stable from Tuesday. Insiders believe prices would edge down further in the forthcoming several days upon the sluggish demand from downstream industries.
"We found it hard to develop new customers now and even regular clients strictly purchase according to orders for final products. Besides, the downward price trend of raw materials dampens the demand for seamless pipe to some degree. We did not close any deals on Wednesday, and last sold 20t at RMB5,300/t (USD768/t) on Tuesday," noted a trader in Guangzhou, quoting RMB5,400/t (USD783/t) for seamless pipe 20# Ф219*6mm GB8163. According to him, discouraged by the prices decline of raw materials as well as the soft demand, steel mills in Shandong moved down prices in succession in recent two weeks. "Supported by the low stocks, we maintain offers stable and provide discounts for firm orders, while some peers could even accept the price as low as RMB5,200/t (USD754/t) right now," added the trader, deeming prices of seamless pipe would decline by RMB50-100/t (USD7-14/t) in the coming several days in view of the quiet market.
Holding around 1,000t of stocks, the trader would sell 700t in April, down from 900t in March. Based on the regular monthly sales volume 1,000t, he roughly sold 1,700t in the first quarter of 2023 and 7,900t in 2022.
"The market runs slowly. The downward price trend weakens end users' cautious attitudes. We did not receive any inquiries nor close any deals on Wednesday, and last sold 30t of 20# Ф219*6mm GB8163 at RMB5,400/t (USD783/t) on Tuesday," disclosed a trader in Chengdu, Sichuan. In the meantime, the trader pointed out that adopting pessimistic attitudes towards the market prospect, downstream customers remain inactive in purchasing. "We tried to contact with several regular clients this week, but they tended to postpone purchasing, believing prices of seamless pipe would decline further in the forthcoming several days. Besides, orders for final products remain insufficient," added the trader. He worries prices of seamless pipe might decrease by about RMB50/t (USD7/t) in the upcoming several days seeing the soft demand from downstream industries.
With the typical monthly sales volume of 4,000t, the trader would sell 1,500t in April, identical to March. He recorded the total sales volume of about 5,500t in the first quarter of 2023, against 30,000t in 2022. Currently, the trader holds approximately 2,000t in stock.
"The downward price trend of raw materials and other major products dampen the purchasing activities of downstream customers. We tried to contact with several buyers this week, but they showed little intention in placing orders. Finally, we sold 30t of seamless pipe 20# Ф219*6mm GB8163 at RMB5,300/t (USD768/t) to a regular client, while he at least bought 100t at one single time in March," revealed a trader in Tianjin. Meanwhile, he disclosed that mills in Shandong keep cutting seamless pipe EXW prices, heightening the cautious attitudes of end users to some extent. Upon the low purchasing activities of downstream customers, the trader predicts a price decline of around RMB50/t (USD7/t) for seamless pipe in the following several days.
Presently, the trader holds around 1,000t of stocks. With the regular sales volume of 4,000t, he roughly sold 8,000t in the first quarter of 2023 and 40,000t in 2022. The sales volume in April would reach 2,000t, similar to March.
"We found it hard to develop new customers now and even regular clients strictly purchase according to orders for final products. Besides, the downward price trend of raw materials dampens the demand for seamless pipe to some degree. We did not close any deals on Wednesday, and last sold 20t at RMB5,300/t (USD768/t) on Tuesday," noted a trader in Guangzhou, quoting RMB5,400/t (USD783/t) for seamless pipe 20# Ф219*6mm GB8163. According to him, discouraged by the prices decline of raw materials as well as the soft demand, steel mills in Shandong moved down prices in succession in recent two weeks. "Supported by the low stocks, we maintain offers stable and provide discounts for firm orders, while some peers could even accept the price as low as RMB5,200/t (USD754/t) right now," added the trader, deeming prices of seamless pipe would decline by RMB50-100/t (USD7-14/t) in the coming several days in view of the quiet market.
Holding around 1,000t of stocks, the trader would sell 700t in April, down from 900t in March. Based on the regular monthly sales volume 1,000t, he roughly sold 1,700t in the first quarter of 2023 and 7,900t in 2022.
"The market runs slowly. The downward price trend weakens end users' cautious attitudes. We did not receive any inquiries nor close any deals on Wednesday, and last sold 30t of 20# Ф219*6mm GB8163 at RMB5,400/t (USD783/t) on Tuesday," disclosed a trader in Chengdu, Sichuan. In the meantime, the trader pointed out that adopting pessimistic attitudes towards the market prospect, downstream customers remain inactive in purchasing. "We tried to contact with several regular clients this week, but they tended to postpone purchasing, believing prices of seamless pipe would decline further in the forthcoming several days. Besides, orders for final products remain insufficient," added the trader. He worries prices of seamless pipe might decrease by about RMB50/t (USD7/t) in the upcoming several days seeing the soft demand from downstream industries.
With the typical monthly sales volume of 4,000t, the trader would sell 1,500t in April, identical to March. He recorded the total sales volume of about 5,500t in the first quarter of 2023, against 30,000t in 2022. Currently, the trader holds approximately 2,000t in stock.
"The downward price trend of raw materials and other major products dampen the purchasing activities of downstream customers. We tried to contact with several buyers this week, but they showed little intention in placing orders. Finally, we sold 30t of seamless pipe 20# Ф219*6mm GB8163 at RMB5,300/t (USD768/t) to a regular client, while he at least bought 100t at one single time in March," revealed a trader in Tianjin. Meanwhile, he disclosed that mills in Shandong keep cutting seamless pipe EXW prices, heightening the cautious attitudes of end users to some extent. Upon the low purchasing activities of downstream customers, the trader predicts a price decline of around RMB50/t (USD7/t) for seamless pipe in the following several days.
Presently, the trader holds around 1,000t of stocks. With the regular sales volume of 4,000t, he roughly sold 8,000t in the first quarter of 2023 and 40,000t in 2022. The sales volume in April would reach 2,000t, similar to March.
