The welded steel pipe market in China was characterized by a downward price trend and decreasing demand before the Chinese Spring Festival holiday (February 14-21), while inventory levels indicated an increase. Over the past two weeks, domestic quotations of Chinese welded pipes have declined by a maximum of RMB 100/mt ($10/mt), while export prices have fallen by $20-50/mt. In the coming period, the cost prices of welded steel pipe are expected to rise further due to increasing feedstock prices. In particular, Baosteel, the top Chinese steelmaker, has raised its March HRC and CRC prices by RMB 300/mt. As a result, market players think that local welded pipe mills may increase their prices after the holiday.
Current domestic prices of Chinese ERW pipes 2"-6" Q215-Q235 grade are at RMB 4,500-4,700/mt ($660-690/mt) ex-works. These local market prices include 17 percent VAT and are on actual weight basis.
Export offers of Chinese ERW pipes, 2"-6" grade B according to ASTM A53/API 5L, are being given at about $630-650/mt FOB.
In December 2009, China's welded pipe output reached 2.8826 million mt, 0.6 percent higher than in November and up 15.3 percent year on year. Meanwhile, for the whole of 2009, welded pipe production in China reached 31.03 million mt, up 22.1 percent year on year, indicating the rapidity of the expansion of the domestic welded steel pipe market in 2009.
China's welded pipe exports in December came to 215,473 mt, down 212,649 mt or 49.67 percent year on year. Total exports in January-December 2009 reached 2.5305 million mt, down 1.273 million mt or 33.48 percent year on year. Affected by weak demand in the global market and the successive antidumping investigations launched by Europe and the US, China's welded pipe exports face severe challenges in the future.