Chinese welded pipe prices expected to rise slightly in May

Despite the upswing in flat steel quotations in the Chinese market, domestic and export welded pipe prices have remained almost unchanged over the past two weeks. Meanwhile, domestic prices in dollar terms have gained $5-10/mt over the period under review due to the strengthening of China's currency. However, market players expect to see a slight rise in welded pipe prices in May due to the increased hot rolled coil (HRC) quotations and the peak season for demand.
 
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 4,800-5,050/mt ($740-780/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,200-5,400/mt ($800-830/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
 
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $770-800/mt FOB on actual weight basis.
 
The increasing export volume of welded pipes reflects higher interest from foreign buyers. However, unrest in the Middle East has reduced steel exports to this region. According to the China Iron and Steel Association (CISA), in March this year China exported 342,385 mt of welded pipes, indicating an increase of 70 percent from the February level and up 89.8 percent year on year. Exports of welded pipes from China in the first three months of 2011 reached 860,311 mt, up 54.4 percent on the corresponding period of 2010.