The welded pipe market in China has remained on a soft trend over the past two weeks amid fading support from economic stimulus policies, while no upticks are seen in domestic and export prices amid lack of signs of a demand rebound. Mills' offers for the domestic market have remained unchanged over the past two weeks amid stable flat steel prices, while traders' offers have moved down by RMB 30-60/mt ($7-12/mt).
Export offers of Chinese welded pipes have not been revised over the past two weeks. Most market players are cautious about the prospects for the market in the coming period and think the market is unlikely to improve in the short term amid slowing purchases from consuming industries.
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 3,600-3,800/mt ($586-619/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,050-3,400/mt ($496-553/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 3,100-3,300/mt ($505-537/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,970-3,110/mt ($483-506/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $550-600/mt FOB on actual weight basis.
$1 = RMB 6.14