The welded pipe market in China remains slow influenced by soft demand from downstream customers. Domestic prices for welded pipes in China have decreased by a maximum of RMB 50/mt ($8/mt) over the past two weeks, while exporters have not revised their offers over the same period as most foreign buyers prefer to stay out of the market. Against the backdrop of limited demand from end-users, tight liquidity and weak support from costs, insiders consider that the welded pipe market in China will be characterized by sluggish activity in the short term.
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 3,800-4,000/mt ($613-645/mt) ex-works, while domestic offers of hollow sections and welded pipes of grade Q215-195 are at the level of RMB 3,200-3,400/mt ($516-548/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 3,300-3,450/mt ($532-556/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,270-3,350/mt ($527-540/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $590-620/mt FOB on actual weight basis.
$1 = RMB 6.20