The Chinese welded pipe market has continued to soften due to pessimistic economic expectations, weak demand both at home and abroad and excessive supply. Accordingly, Chinese welded pipe producers have decreased their domestic prices by RMB 200/mt ($32-33/mt) over the past two weeks, while their export offers have gone down by $20-40/mt. However, both local and foreign buyers are reluctant to purchase at the current time as they expect quotations for Chinese welded pipes to decrease further amid lower raw material costs, the ongoing supply glut, swollen inventory and soft demand from pipe consuming industries.
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 3,100-3,300/mt ($489-520/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 3,900-4,100/mt ($615-646/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, are varying at around $600-680/mt FOB on actual weight basis, while export offers of smaller mills are standing at $540-560/mt FOB. Export quotations of 1/2"-2" galvanized pipes are at around $650-710/mt FOB.