Production pace eases National seamless pipe average price may remain stable this week

Last week, domestic seamless pipe prices remained stable, showing no change week-on-week. Raw material costs increased by 10-20 yuan per tonne, maintaining cost-side support. Most pipe manufacturers quoted prices on a case-by-case basis, while the market adopted a cautious wait-and-see approach due to the impact of the off-season for shipments. On the macro front, People’s Bank of China Governor Pan Gongsheng stated that in 2026, the central bank will continue implementing appropriately accommodative monetary policy, prioritising stable economic growth and reasonable price recovery as key considerations. There remains scope for further reserve requirement ratio cuts and interest rate reductions this year. Market developments saw futures prices initially rise before declining this week, with the market returning to fundamentals. Seamless pipe prices remained broadly stable. As the traditional Spring Festival approaches, demand has noticeably contracted, with many regions preparing for extended holidays. Localised transactions in southern areas showed limited growth. Overall, seamless pipe prices are expected to maintain stable operations this week.

Weekly Production Survey of National Seamless Pipe Mills (30 manufacturers, 101 production lines) On-site inventory: 721,600 tonnes, down 1,600 tonnes week-on-week; Raw material inventory: 278,900 tonnes, up 500 tonnes week-on-week. With pipe mills progressively undergoing maintenance, on-site inventories have declined. As the Chinese New Year approaches, mills are commencing holiday shutdowns this week, suggesting on-site inventories may continue to decrease marginally.