Purchasing activity in China's welded pipe market has continued to slacken before the Chinese Spring Festival holiday which starts during the coming weekend. Despite rising prices for flat steel in China, local welded pipe producers have kept their domestic and export quotations unchanged from the levels of two weeks ago amid low business activity in the domestic market and lack of demand from foreign buyers.
Meanwhile, Chinese welded pipe producers are bullish on the prospects for the market in the period after the Spring Festival holiday on back of the upturn in feedstock prices.
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 4,300-4,500/mt ($683-715/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 3,890-4,050/mt ($618-643/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,780-3,900/mt ($600-619/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $720-750/mt FOB on actual weight basis.