Chinese welded pipe prices have continued to slide down amid slow buying in both local and foreign markets. Domestic prices for locally produced welded pipes have declined by RMB 100-150/mt ($15-30/mt) over the past three weeks, while export offers have decreased by $20/mt. Downstream end-user demand is shrinking due to the tightened financial situation, the slowdown in economic development and the suspension of some construction projects during the winter season. Flat steel price cuts by Baosteel and other steelmakers have also affected the welded pipe market in China. Market players expect that welded pipe prices may continue to move down further in line with the cost of flat steel products as the market is entering the off-season and is not likely to revive in the coming short-term period.
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 4,350-4,700/mt ($680-735/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,200-5,400/mt ($815-845/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
According to the China Iron and Steel Association (CISA), in October this year China produced 3.937 million mt of welded pipes, more than September's 3.83 million mt and marking an increase of 37.4 percent year on year. Meanwhile, China's welded pipe production in the first 10 months of this year reached 32.712 million mt, up 28 percent on the corresponding period of last year.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $760-780/mt FOB on actual weight basis, while 10"-18" welded pipes are at $780-880/mt FOB.
According to the China Iron and Steel Association (CISA), in October this year China exported 282,766 mt of welded pipes, indicating an increase of 14 percent from the September level and up 27.1 percent year on year. Exports of welded pipes from China in the first 10 months of 2011 reached 2,812,467 mt, up 29.2 percent on the corresponding period of 2010.