Most Chinese welded pipe producers are keeping their domestic prices stable due to weaker demand, while traders have cut their offers to local buyers by around RMB 100/mt ($17/mt) over the past two weeks seeing softer demand from end-use customers amid seasonal factors. At the same time, export quotations of Chinese welded pipes have increased by a maximum of $20/mt amid firm demand from South Asian customers. However, these price increases are not expected to be maintained in the coming period amid lower feedstock quotations, tight liquidity and weak downstream demand.
Players in China's welded pipe market do not expect any improvement in prices or demand towards the end of the year.
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 4,200-4,300/mt ($669-685/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 3,800-4,000/mt ($605-637/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $700-750/mt FOB on actual weight basis.