Chinese seamless pipe prices up
2024-04-11 08:32:27 [Print]
BEIJING (Asian Metal) 11 Apr 24 - Boosted by the prices rebound of raw materials, domestic seamless pipe producers and traders lifted prices tentatively this week. Presently, the mainstream prices of 20# Ф219*6mm GB8163 hover at RMB4,950-5,000/t (USD684-705/t), RMB5,050-5,100/t (USD698-705/t) and RMB4,700-4,750/t (USD650-657/t) D/P respectively in warehouses Tianjin, Shanghai and Guangzhou, up by around RMB50/t (USD7/t) compared with late last week. Insiders foresee firm prices in the coming several days seeing the relatively soft demand from downstream industries.
"We increased prices of seamless pipe this week seeing the prices rebound of iron ore and those of other major steel products," noted a trader in Tianjin, offering RMB5,000/t (USD705/t) D/P for seamless pipe 20# Ф219*6mm GB8163 and could accept RMB4,950/t (USD684/t) at most for firm orders, while last sold 30t of the material at RMB4,900/t (USD678/t) last Sunday. According to him, the purchasing enthusiasms of end users increased following the price hike. "We received about seven inquiries and finally sold 50t of seamless pipe on Wednesday, while just took 1-2 inquiries last week," added the trader. Nevertheless, he points out that the operating rates of downstream projects remain low and the demand keeps far from strong, and thus prices of seamless pipe powerless to go up further in the coming several days.
Holding around 900t in stock, the trader might sell approximately 900t of seamless pipe in April, up from 700t in March. Based on the typical monthly sales volume of 1,000t, he recorded the sales volume of around 8,400t in 2023 and 1,600t more or less in the first three months of 2024.
A trader in Chengdu, Sichuan quotes RMB5,100/t (USD705/t) D/P with the concession of no more than RMB20/t (USD3/t) for seamless pipe 20# Ф219*6mm GB8163 at present, while could accept the price as low as RMB5,050/t (USD698/t) late last week. Attributing the price rise to the increasing prices of steel mills, the trader points out that steel mills keep eager to raise ex-works prices of seamless pipe boosted by the prices rebound of raw materials. Besides, the market inventory remains low and traders are eager to move up prices to transfer losses. "However, the market performance shows no much improvement due to the low demand from downstream industries. We just sold 30t of the material at RMB5,080/t (USD702/t) on Wednesday, similar to the average daily sales volume in late March," added the trader, deeming prices of seamless pipe might keep stable in the forthcoming several days.
With the typical monthly sales volume of 2,000t, the trader estimates that the sales volume would achieve about 1,500t in April, in line with March. He sold about 5,200t in the first quarter of 2024 and 19,000t or so in 2023, holding more or less 2,000t in inventory for the moment.
A trader in Guangzhou confirms the slight price rise, quoting RMB4,750/t (USD657/t) D/P for seamless pipe 20# Ф219*6mm GB8163 right now, against RMB4,700/t (USD650/t) late last week. "Steel mills in Shandong informed us about the prices hike of seamless pipe and tubing blank early this week, and thus we followed suit," explained the trader. However, he shows little confidence in the market prospect and does not expect for another price rise in the coming several days upon the slow market. According to him, several regular end users keep inactive in production as it's hard for them to withdraw capitals. Besides, the rainy season makes the demand shrink. The trader did not conclude any deals on Wednesday, and last sold 50t of the material at RMB4,700/t (USD650/t) on Monday.
Based on the regular monthly sales volume of 3,000t, the trader might just sell 1,500t of seamless pipe in April, in line with March. He roughly sold 4,000t of seamless pipe in Q1 of 2024, with more or less 1,000t in stock for the moment.
"We increased prices of seamless pipe this week seeing the prices rebound of iron ore and those of other major steel products," noted a trader in Tianjin, offering RMB5,000/t (USD705/t) D/P for seamless pipe 20# Ф219*6mm GB8163 and could accept RMB4,950/t (USD684/t) at most for firm orders, while last sold 30t of the material at RMB4,900/t (USD678/t) last Sunday. According to him, the purchasing enthusiasms of end users increased following the price hike. "We received about seven inquiries and finally sold 50t of seamless pipe on Wednesday, while just took 1-2 inquiries last week," added the trader. Nevertheless, he points out that the operating rates of downstream projects remain low and the demand keeps far from strong, and thus prices of seamless pipe powerless to go up further in the coming several days.
Holding around 900t in stock, the trader might sell approximately 900t of seamless pipe in April, up from 700t in March. Based on the typical monthly sales volume of 1,000t, he recorded the sales volume of around 8,400t in 2023 and 1,600t more or less in the first three months of 2024.
A trader in Chengdu, Sichuan quotes RMB5,100/t (USD705/t) D/P with the concession of no more than RMB20/t (USD3/t) for seamless pipe 20# Ф219*6mm GB8163 at present, while could accept the price as low as RMB5,050/t (USD698/t) late last week. Attributing the price rise to the increasing prices of steel mills, the trader points out that steel mills keep eager to raise ex-works prices of seamless pipe boosted by the prices rebound of raw materials. Besides, the market inventory remains low and traders are eager to move up prices to transfer losses. "However, the market performance shows no much improvement due to the low demand from downstream industries. We just sold 30t of the material at RMB5,080/t (USD702/t) on Wednesday, similar to the average daily sales volume in late March," added the trader, deeming prices of seamless pipe might keep stable in the forthcoming several days.
With the typical monthly sales volume of 2,000t, the trader estimates that the sales volume would achieve about 1,500t in April, in line with March. He sold about 5,200t in the first quarter of 2024 and 19,000t or so in 2023, holding more or less 2,000t in inventory for the moment.
A trader in Guangzhou confirms the slight price rise, quoting RMB4,750/t (USD657/t) D/P for seamless pipe 20# Ф219*6mm GB8163 right now, against RMB4,700/t (USD650/t) late last week. "Steel mills in Shandong informed us about the prices hike of seamless pipe and tubing blank early this week, and thus we followed suit," explained the trader. However, he shows little confidence in the market prospect and does not expect for another price rise in the coming several days upon the slow market. According to him, several regular end users keep inactive in production as it's hard for them to withdraw capitals. Besides, the rainy season makes the demand shrink. The trader did not conclude any deals on Wednesday, and last sold 50t of the material at RMB4,700/t (USD650/t) on Monday.
Based on the regular monthly sales volume of 3,000t, the trader might just sell 1,500t of seamless pipe in April, in line with March. He roughly sold 4,000t of seamless pipe in Q1 of 2024, with more or less 1,000t in stock for the moment.
