The Chinese welded pipe market has continued to experience a downward trend because of its poor sales performance, both domestic and foreign. Domestic prices of welded pipes have decreased by RMB 40-100/mt ($5-16/mt) over the past two weeks, while export offers have declined by a maximum of $20/mt during the same period. Market players have little confidence in the prospects for the market in the coming period in view of insufficient demand and the approaching winter season. Welded pipe prices in China are likely to fluctuate at relatively low levels during the remainder of the year.
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 3,560-3,730/mt ($581-608/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,000-3,400/mt ($489-555/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 3,050-3,200/mt ($498-522/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,930-3,070/mt ($478-501/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $550-580/mt FOB on actual weight basis.
$1 = RMB 6.13