Despite poor transaction activity, the upward trend in the Chinese welded pipe market has continued due to costlier raw materials. Domestic quotations of Chinese welded pipes have increased by around RMB 70-100/mt ($12-17/mt) over the past two weeks, while export offers have moved up by a maximum of $10/mt.
Most market participants think that welded pipe quotations may move upwards throughout August, though at a slow pace due to seasonally low demand and oversupply in the market. Exports of welded pipes from China are expected to be affected by growing trade protectionism in key sales outlets.
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 4,300-4,500/mt ($698-730/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 3,850-4,000/mt ($625-649/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,700-3,770/mt ($600-612/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $650-680/mt FOB on actual weight basis.