The sales performance in the Chinese market for welded pipes has remained poor since demand from consuming industries is soft. Domestic offers have declined by RMB 50-100/mt ($9-17/mt), while export offers have moved down by $10-20/mt, amid softening raw material prices and depressed domestic and overseas markets. Market players hold the view that the sales performance is unlikely to improve in the short term, due to such factors as gloomy economic growth both at home and abroad, imbalance between supply and demand, weakening raw material prices, and the poor credit and financial data of steel sector in China.
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 3,800-3,950/mt ($616-641/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,200-3,500/mt ($519-568/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 3,300-3,450/mt ($535-560/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,140-3,290/mt ($509-534/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $580-600/mt FOB on actual weight basis.
$1 = RMB 6.16