Chinese welded pipe prices keep rising

Chinese producers of welded pipes have continued to lift their quotations gradually, encouraged by recent rises in feedstock prices. Domestic welded pipe prices have soared by RMB 50-100/mt ($10-15/mt) over the past two weeks, while export quotations of Chinese welded pipes have increased by a maximum of $10/mt over the same period. Market players report that higher prices are also supported by inventory replenishment and improving demand in the domestic market as construction activities are picking up in China. However, interest in Chinese welded pipes from foreign buyers remains low, negatively impacting Chinese exports. It is believed that the welded pipe price uptrend in China will continue in the coming period reflecting surging costs, as prices of iron ore, coking coal, scrap and fuels continue their uptrend since the fourth quarter of last year.
 
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 ($735-770/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,200-5,400/mt ($795-825/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
 
According to the China Iron and Steel Association (CISA), in March this year China produced 3.248 million mt of welded pipes, more than February's 1.838 million mt and marking an increase of 27.3 percent year on year. Meanwhile, China's welded pipe production in the first three months of this year reached 7.552 million mt, up 19.2 percent on the corresponding period of last year.
 
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.