The Chinese welded pipe market has witnessed sluggish business activity during the past two weeks. Against the backdrop of the arrival of the hot summer weather, the welded pipe market is suffering from slack demand from both local and overseas buyers and is also characterized by tight cash flow. Domestic prices of welded pipes in China have decreased by RMB 40-100/mt ($4-14/mt) over the period under review, while export offers of welded pipes from China have declined by $10/mt during the same period. Market insiders believe that it will be difficult for the Chinese welded pipe market to recover in the short term due to the approach of the off-season for consumption.
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 3,900-4,100/mt ($626-658/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 3,420-3,520/mt ($549-565/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,290-3,350/mt ($528-538/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $600-620/mt FOB on actual weight basis. Export offers of galvanized ERW pipes of Q235-Q345 steel grade are at levels of $700-740/mt FOB.
$1 = RMB 6.23