Weak downstream demand in China’s welded pipe market

Thursday, 09 October 2014 11:17:08 (GMT+3)   |  
       

Business activity in the Chinese welded pipe market has remained slack amid tepid downstream demand. However, most Chinese suppliers have not revised their domestic and export prices for welded pipes over the past two weeks as market participants have been on a week-long break for the National Day Holiday. Only traders from Tianjin and Beijing have cut their prices, by a margin of RMB 20-80/mt ($3-13/mt). The Chinese welded pipe market is less likely to rebound in the short run amid sluggish market sentiment against the backdrop of slower economic growth, the steel market downturn, tightened bank credit, and a drop in exports.

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 3,600-3,800/mt ($587-619/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,000-3,350/mt ($489-546/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 3,000-3,250/mt ($489-530/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,920-3,070/mt ($476-500/mt) ex-warehouse.

Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $540-580/mt FOB on actual weight basis.

$1 = RMB 6.13


Similar articles

US structural pipe and tube exports down 7.3 percent in September

28 Nov | Steel News

GCC to announce definitive safeguard measures against certain steel imports

10 May | Steel News

Turkish welded pipe producers’ export prices remain stable

07 Aug | Tube and Pipe

Local Turkish welded pipe prices remain stable

02 Aug | Tube and Pipe

Local Chinese steel pipe prices indicate slight fluctuations

01 Aug | Tube and Pipe

Turkish welded pipe producers' export prices remain stable

31 Jul | Tube and Pipe

Chinese steel pipe export offer prices move sideways

31 Jul | Tube and Pipe

Local Chinese steel pipe prices mostly remain stable

25 Jul | Tube and Pipe

Local Turkish welded pipe offers remain stable

12 Jul | Tube and Pipe

Local Chinese steel pipe prices soften slightly or move sideways

11 Jul | Tube and Pipe