Chinese welded pipe producers are facing slow trading activities in key sales outlets and uncertainty in the feedstock market. Over the past two weeks, some Chinese welded pipe producers have managed to hold their domestic quotations firm, though other producers' quotations may be RMB 20-50/mt ($1-5/mt) lower than two weeks ago. Export quotations of Chinese welded pipes have declined by $10-20/mt over the same period due to poor demand in key sales markets. Industry sources assume that prices of Chinese welded pipes are unlikely to increase in the short term influenced by downward adjustments in the local flat steel segment and in reaction to the sluggishness in the market.
Current offers of locally produced 2"-6" welded pipes of grade B as per ASTM A53 are being given to the Chinese domestic market at an average of RMB 4,300-4,400/mt ($689-705/mt) ex-works. These local market welded pipe prices include 17 percent VAT. Traders in Shanghai are offering Q215-Q235 welded pipes made to GB/T3091 at around RMB 3,900-3,980/mt ($625-638/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,710-3,830/mt ($595-614/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, have stayed at around $670-700/mt FOB on actual weight basis.