Domestic and export quotations of Chinese welded pipes have stabilized over the past two weeks, while no improvement has been seen in buying activity. Domestic demand for welded steel pipes has weakened in China on account of the winter weather and tight liquidity, while China's export market for welded pipes is slow now as most buyers are on their Christmas holidays.
Market insiders agree that welded pipe prices in China may go up in January given the support from the recent growth of iron ore and feedstock prices. Meanwhile, other market players remain cautious about the outlook for January given tight liquidity and the continuing sluggishness of demand.
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 4,200-4,250/mt ($666-674/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 3,840-3,970/mt ($609-629/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering the same pipes at RMB 3,700-3,720/mt ($586-590/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $700-720/mt FOB on actual weight basis.