Chinese welded pipe producers have had to reduce quotations on the back of lower feedstock prices, high supply and still slow demand in all markets. Domestic quotations have decreased by RMB 20-60/mt ($2-9/mt) over the past two weeks, while export quotations of Chinese welded pipes have decreased by $10-20/mt over the past two weeks. With the transition in China's leadership about to take place, the national government has reduced expectations for domestic economic growth.
The Chinese welded pipe market is likely to indicate a soft trend in the coming period as a demand spurt in the domestic market is unlikely to be seen amid the central government's new measures to tame rising house prices. Meanwhile, overall export demand remains lackluster.
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 4,300-4,450/mt ($685-708/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 3,900-4,030/mt ($621-642/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,740-3,870/mt ($595-616/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, have stayed at around $710-740/mt FOB on actual weight basis.