Chinese suppliers cut welded pipe prices further

The Chinese welded pipe market has continued to weaken due to depressed demand in the domestic and overseas markets and the decline in flat steel prices. Domestic welded pipe prices have gone down by RMB 50-100/mt ($10-15/mt) over the past two weeks, while export quotations of Chinese welded pipes have decreased by $10-15/mt. Market participants believe that the welded pipe market in China may become stable in the coming period, though they anticipate an increase in domestic and export prices in the peak season expected after the summer. New affordable housing projects in China, on which construction is expected to start by the end of November this year, will stimulate welded pipe demand in the country in the second half of the year, pushing up prices. Expected better demand from foreign customers after the summer holidays in Europe and Ramadan in the Middle East will also help Chinese welded pipe suppliers to lift export quotations for September deliveries. However, for the coming short-term period, market sentiments remain weak.
 
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 4,650-5,000/mt ($720-770/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,300-5,400/mt ($820-835/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
 
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $770-865/mt FOB on actual weight basis, while 10"-18" welded pipes are at $800-940/mt FOB.