Prices have continued to fall in the Chinese welded pipe market amid slow domestic and foreign demand and high inventories. Over the past two weeks, domestic prices of Chinese welded pipes have decreased by RMB 100-200/mt ($21-33/mt), while export offers have gone down by a maximum of $10/mt. With summer approaching, market insiders do not expect to see demand pick up obviously until the middle of the third quarter. In addition to sluggish transaction activity, the decreasing domestic quotations of flat steel will also contribute to falling welded pipe quotations. Moreover, slackening demand from foreign buyers in the context of the debt crisis in EU countries and the low level of the global economic growth will put pressure on welded pipe mills in China to reduce their export prices.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the Chinese domestic market at an average of RMB 4,000-4,100/mt ($632-647/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,900-5,000/mt ($774-789/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $750-780/mt FOB on actual weight basis.