Ultrasonic guided wave technology has been successfully applied to detect multiple types of defects in pipes. However, the circumferential location and coverage of a defect are less studied because it is difficult to determine. In this study, the fundamental torsional mode T (0, 1) is selected to conduct monitoring of the circumferential defect in pipelines because of its almost non-dispersive property. A radar map of the peak wave signals at 30 circumferential positions is proposed to detect the damage. The circumferential defect of a steel pipe is thoroughly investigated using numerical simulation. First, the circumferential positioning of defects in various areas of the pipe is studied. Second, the results are compared to those based on longitudinal guide waves. Finally, the circumferential coverage of a defect in the pipeline is determined. The waves are excited and received using the pitch–catch approach, and the collected monitoring signals are processed using the Hilbert transformation. According to the findings, the circumferential defect in the pipe can be effectively identified from a ‘T’ shape in the radar image, and the monitoring method by the torsional guided wave is superior to the longitudinal wave method. The results clearly demonstrate the advantages of torsional guided waves in defect monitoring. The proposed method is expected to provide a promising solution to circumferential damage identification in pipelines.