Low demand for welded pipes from end-users before and during the National Day holiday in China has pushed some welded pipe suppliers to cut their prices. However, other mills and traders have kept their prices unchanged in the quiet market situation. Thus, domestic quotations of welded pipes in China have decreased by RMB 100-250/mt ($15-30/mt) over the past two weeks, while export prices have moved down by a maximum of $20/mt in the same period. Quotations of flat steel products in China are also declining without the support of demand. However, market players expect welded pipe prices may climb up again after the holidays amid higher power supply charges and rising steel demand resulting from increased housing construction. While the welded pipe market still faces oversupply, the Chinese government will continue to implement its campaign to limit electricity consumption in Q4, thereby exerting a likely negative impact on steel supply.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the domestic market at an average of RMB 4,400-4,700/mt ($660-700/mt) ex-works. These local market prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $780-800/mt FOB on actual weight basis.
Deals were thin in the export market after the recent price increase, mainly due to the expectations of a price decline which caused overseas customers to adopt a wait-and-see stance. According to the China Iron and Steel Association (CISA), in August this year China exported 183,125 mt of welded pipes, indicating a decrease of 20 percent from the July level but up 3.3 percent year on year. China's total welded pipe exports in the first eight months of this year reached 1,748,195 mt, up 3.4 percent year on year.