Chinese welded pipe producers have continued to increase domestic prices, citing a rapid rise in feedstock quotations. Thus, domestic prices have gone up by RMB 100-200/mt ($20-35/mt) over the past two weeks, while export offers have stayed at previous levels as buying activity in foreign markets has remained rather weak. Despite the rise in domestic welded pipe prices, the demand outlook for the rest of the year remains weak. The economy, both in China and worldwide, still faces great downward pressure and it is still hard to foresee significant improvement in demand from local and foreign customers. Accordingly, it is anticipated that domestic and export welded pipe prices may be characterized by softness in the coming period.
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 3,800-4,100/mt ($604-651/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,200-4,300/mt ($667-683/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 $680-750/mt FOB on actual weight basis, while export offers of smaller mills are standing at $645-670/mt FOB. Export quotations of 1/2"-2" hot dip galvanized pipes and hollow sections are at around $770-800/mt FOB.