During the week ending August 12, average Chinese steel pipe export offer prices have moved sideways. At present, export offers for welded pipe given by Chinese suppliers are in the range of $540-560/mt FOB, moving sideways on average compared to August 5, while export offers for API 5L seamless pipe given by Chinese suppliers are at $570-600/mt FOB, for September shipment, remaining stable on average compared to August 5.
| Product name | Quality | Spec. | Price ($/mt) FOB | Weekly change ($/mt) |
| API 5L seamless pipe | Gr.B | 2''-6'' Std | 585 | 0 |
| Seamless pipe, casing (hot rolled forming) | J55 | 3''-8'' Std | 590 | 0 |
| Seamless pipe, tubing (cold drawn forming) | ST37 | < 3'' Std | 690 | 0 |
| Welded pipes | Gr.B | 2''-6'' Std | 550 | 0 |
The consumption of construction materials in the global market has been slow during the summer off-season. Construction activities in Southeast Asia are hampered by the rainy season, while the Middle East is experiencing extreme heat. Meanwhile, the European summer holiday period has resulted in subdued downstream purchasing activities. In this context, most end-users in the steel pipe market have been limiting their purchases to essential restocking. Moreover, the EU's latest steel tariff policies and the antidumping and countervailing investigations initiated by multiple countries have significantly raised barriers against exports, intensifying supply diversion pressures and fueling more intense regional market competition. The good news is that the orders for Chinese steel pipes from Africa and the Middle Asia have been quite good, bolstering steel pipe export prices to a certain degree.
During the given week, steel pipe prices in the Chinese domestic market have fluctuated within a limited range, while there has been some room in price negotiations. The production of steel pipes has indicated slight declines, while demand from downstream users has been slack amid the negative impact of high temperatures and of the widespread heavy rains caused by Typhoon Dolphin. Inventories of steel pipe have increased, exerting a negative impact on prices. Coke prices have moved down, weakening the support for steel pipe prices from the cost side. It is thought that steel pipe prices in the Chinese domestic market will likely continue to fluctuate within a limited range in the coming week.
As of August 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,239/mt ($477/mt), increasing by RMB 32/mt ($4.7/mt) or 1.0 percent since August 5, while rising by 0.19 percent compared to the previous trading day, August 11.
$1 = RMB 6.7882
