Higher prices for HR coils in China have driven up domestic and export prices of welded pipes. Thus, over the past two weeks domestic quotations of locally produced welded pipes have increased by RMB 200/mt ($30/mt), while export prices have risen by $20-30/mt over the same period.
In particular, offers of Chinese ERW pipes 2"-6" Q215-Q235 grade are being given to the domestic market at RMB 4,500-4,800/mt ($660-700/mt) ex-works. These local market prices include 17 percent VAT and are on actual weight basis.
On the export side, the mainstream export quotations of Chinese ERW pipes, 2"-6" grade B according to ASTM A53/API 5L are now in the range of $630-670/mt FOB.
Market insiders are very optimistic regarding the future prospects for the market. Real GDP has increased strongly in China, while construction activity is picking up. Market players believe that welded pipe prices will rise because of the increasing cost of feedstock and the recovery of the domestic market. However, interest from foreign customers remains very slow. Most orders for Chinese welded pipes are coming from the Middle East, North Africa and Southeast Asia, though the quantities involved are very small.