The Chinese welded pipe market has remained sluggish due to the winter season and the negative impact of the holiday period on demand. Although market players expected to see higher prices for welded pipes after the holiday, Chinese suppliers have not yet revised their prices, keeping them unchanged over the past two weeks. It appears difficult for welded pipe demand in the domestic market to improve in February due to the winter weather conditions, tight bank credit and high inventory. However, raw material prices are likely to edge up slightly in China, pushing welded pipe makers to raise their quotations. Meanwhile, there seems to be limited room for rises in welded pipe prices amid low trading activity. Market insiders are bearish on the prospects for export demand in view of the adverse influence of the euro zone debt crisis and the ailing global economy.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the Chinese domestic market at an average of RMB 4,100-4,200/mt ($650-665/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,000-5,100/mt ($790-810/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $750-780/mt FOB on actual weight basis, while 10"-18" welded pipes are at $770-850/mt FOB.