Chinese suppliers reduce prices for welded pipes

The Chinese welded pipe market has continued to see a weak trend after the National Day holiday (October 1-7) amid falling prices for feedstock material and low business activity. Domestic prices for locally produced welded pipes have declined by a maximum of RMB 50/mt ($5/mt) over the past two weeks, while export offers have decreased by $10-20/mt. The sluggish domestic pipe market is mainly attributable to the tightening monetary policy measures of the Chinese government. The high interest rate puts pressure on traders, and they prefer to adopt a wait-and-see attitude as regards further replenisments. The slowdown in exports is mainly blamed on weak demand in Europe and the US and on ongoing trade restrictions. Market players report that demand for welded pipes from the machinery, shipbuilding and construction industries remains sluggish. It is thought that welded pipe prices in China may continue to remain on their downward trend in the fourth quarter.
 
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 ($730-780/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,500-5,600/mt ($860-875/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 $800-830/mt FOB on actual weight basis, while 10"-18" welded pipes are at $830-930/mt FOB.