Chinese welded pipe prices have remained on a downward trend in the past two weeks amid slack domestic and overseas demand, and also given the ongoing decline in domestic prices for feedstock material. Accordingly, Chinese welded pipe producers have decreased their domestic prices by RMB 200/mt ($32-33/mt) over the past two weeks, while export offers have gone down by $20-30/mt. Chinese welded pipe producers are pessimistic as regards the prospects for an improvement in the market in the short term, considering the unfavorable situation in consuming industries at home and falling substrate costs. However, export prices for welded pipes may stop falling in September due to an anticipated upturn in export 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 3,300-3,500/mt ($521-552/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,100-4,300/mt ($647-679/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 $640-700/mt FOB on actual weight basis, while export offers of smaller mills are standing at $580-600/mt FOB.