Chinese welded pipe market fails to see improvement in end-user demand

China's welded pipe market has continued its weak trend as demand from consuming industries has shown no signs of being released. Domestic mills' offers have declined by RMB 70-100/mt ($11-16/mt), while local traders have cut their prices by RMB 30-100/mt ($5-17/mt) over the past fortnight. Export offers of welded pipes from Chinese producers have decreased by $20-30/mt during the period in question. Most buyers are maintaining a wait-and-see stance towards the market. Market participants do not expect any improvements in the near future and are mostly just hoping for price stabilization.
 
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 3,600-3,800/mt ($586-619/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,000-3,350/mt ($489-546/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 3,000-3,250/mt ($489-529/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,940-3,150/mt ($479-513/mt) ex-warehouse.
 
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $540-580/mt FOB on actual weight basis.
 
$1 = RMB 6.14