According to data from China Iron & Steel Association (CISA), as the traditional peak season, October China has a production of steel pipe up to 4.82mln tons, recorded high this year, up 6.4% from September and 21% year on year.

The production of welded pipe and seamless steel pipe also increased month on month simultaneously. The total production of domestic steel pipe was 42.28mln tons in the first ten months, up 11% year on year.

The domestic seamless steel production rose from 1.77mln tons in September to 1.94mln tons in October, an increase of 4.4% year on year. The accumulative production reached 17.4mln tons in the first ten months this year. Industry insiders estimated that it has something with the recovery of export. Data showed that the seamless steel pipe export increased from 238,387 tons in August to 286,602 in September.

At the same time, domestic welded pipe production hit record high with 2.88mln tons in October, up 22% year on year, while the output was 2.76mln tons in September. China’s welded pipe output once reached 2.83mln tons in August this year. Industry insiders said that with the reviving of real estate, the welded pipe demand is improving actually, but the situation of overcapacity in the current market is intensifying, because many pipe plants have been down profit to seize market shares and no plan to reduce production, which will curb welded pipe to revive.