Welded pipe prices have continued to weaken in China amid slow demand and softer feedstock quotations. Over the past two weeks, Chinese mills' domestic quotations have decreased by RMB 90-150/mt ($13-22/mt) as they seek to increase their shipments, while export offers of welded pipes from Chinese suppliers have declined by around $10-20/mt. However, lower welded pipe prices from Chinese suppliers have still failed to stimulate downstream buying interest. Welded pipe prices in China may continue their downtrend in the near term due to falling feedstock prices and amid increased market supply. With the slowdown in China's economic growth and the approach of the rainy season in Asian countries, pessimistic sentiment has increased 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 4,100-4,200/mt ($663-679/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 3,650-3,780/mt ($590-611/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,500-3,670/mt ($566-593/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" Sch 40 grade B according to ASTM A53, have stayed at around $630-660/mt FOB on actual weight basis.