Chinese welded pipe producers are lowering both domestic and export prices to boost sales amid sluggish buying. Over the past two weeks, domestic prices of Chinese welded pipes have decreased by RMB 50-100/mt ($10-15/mt), while export offers have gone down by $10-30/mt. The market outlook for the coming period is not bright due to serious oversupply, relative low domestic demand and an uncertain export environment. In addition, with the approach of the summer, seasonal factors like high temperatures and the rainy season in southern China will curb buying activity in the domestic market, while sluggish global welded pipe demand may also lead to a decrease in the volume of export orders.
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 4,200-4,300/mt ($665-680/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,900-5,100/mt ($775-810/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 $750-790/mt FOB on actual weight basis.