Chinese welded pipe prices have halted their decrease and followed a stable trend during the past two weeks. As demand is not so strong, welded pipe prices are just following the general price tendency in the Chinese steel market.
Current offers of locally produced welded pipes, 2"-8" Q215-Q235 grade, are being given to the domestic market at an average of RMB 3,700-4,000/mt ($540-585/mt) ex-works, compared to RMB 3,850-4,000/mt ($565-585/mt) ex-works three weeks ago. These local market prices include 17 percent VAT and are on actual weight basis.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53/API 5L, have remained at the level of three weeks ago, at around $670-720/mt FOB.
Market players report that Chinese traders have begun to restock pipes these days as prices seem more stable and also report that transaction volumes are growing. Although inventories of flat products are still rising, some narrow strip makers have announced plans to raise prices by RMB 40-60/mt because of increased iron ore costs. While such hikes may help push up welded pipe prices, there has still not been any obvious recovery in demand in the domestic and external markets.