Business activity in the Chinese welded pipe market remains poor and growth in demand has been tepid, although China has already entered the peak season for steel-consuming industries. Over the past fortnight, domestic mills' quotations have remained unchanged amid small upturns in demand from the construction sector, while traders' quotations have declined by RMB 30/mt ($2-3/mt) in order to spur purchases and reduce high stocks. At the same time, export offers of welded pipes from Chinese suppliers have declined by around $10/mt amid lackluster demand from overseas customers.
Most market players are pessimistic on the prospects for the market in the coming period. It is thought that welded pipe prices may continue their downward trend in May given the still lukewarm demand in the current peak season for consumption of welded pipes, decreasing feedstock quotations and high inventories.
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 4,300-4,400/mt ($692-708/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 3,870-3,950/mt ($623-636/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,680-3,800/mt ($592-612/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, have stayed at around $660-700/mt FOB on actual weight basis.