Welded pipe prices have been showing signs of weakness in China as the effects of the winter lull start to kick in. Domestic welded pipe prices of producers in China have dropped by RMB 20-50/mt ($3-7/mt) over the past two weeks, while Chinese welded pipe producers' export quotations have remained stable. However, the majority of foreign customers refuse to make purchases ahead of the end of the fiscal year. Chinese traders have cut their offers for local buyers by RMB 20-60/mt ($2-9/mt) over the period under review. Market players believe that the seasonal weak demand will prevent China's welded pipe prices from rebounding. Accordingly, the market is unlikely to see a recovery in the near future.
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 3,520-3,680/mt ($574-600/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,000-3,300/mt ($490-539/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 3,000-3,150/mt ($490-514/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,840-2,950/mt ($463-481/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $530-550/mt FOB on actual weight basis.
$1 = RMB 6.12