Poor buying activity and high output levels in the Chinese welded pipe market have caused domestic producers to continue to decrease their prices. Chinese welded pipe producers have decreased their domestic prices by RMB 100-200/mt ($14-31/mt) over the past two weeks, while export offers have gone down by $10-30/mt. Most market insiders expect domestic demand to deteriorate in the summer as the welded pipe consuming sectors are entering the off-peak consumption season. Also, the worsening euro zone debt crisis, the approach of Ramadan in the Middle East and the rainy season in Southeast Asia are depressing the export market outlook for the coming period. Without strong demand, it will be difficult to see a recovery in the welded pipe market in China, and prices may remain at low levels with some fluctuations possible.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the Chinese domestic market at an average of RMB 3,700-3,900/mt ($586-618/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,600-4,800/mt ($728-760/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of welded pipes from large mills, 2"-8" grade B according to ASTM A53, are varying at around $700-750/mt FOB on actual weight basis, while export offers of smaller mills are standing at $650-680/mt FOB. Export quotations of 1/2"-6" hot dipped galvanized pipes are at around $750-870/mt FOB.