In spite of a seasonal drop in business activity, Chinese welded pipe makers have started to raise their domestic and export prices on the back of growing raw material costs and bullish sentiment in the domestic market. Mills' domestic quotations have increased by RMB 100-150/mt ($18-26/mt) over the past two weeks, while stockists have lifted their offers by RMB 80-150/mt ($14-25/mt). Export quotations of Chinese welded pipes have increased by a maximum of $20/mt over the past two weeks.
Market players believe that the recent price hikes for flat steel by China's Baosteel Group and other producers will push welded pipe mills in China to further increase their own prices in the coming period.
Current offers of locally produced 2"-6" welded pipes of grade B as per ASTM A53 are being given to the Chinese domestic market at an average of RMB 4,300-4,400/mt ($684-700/mt) ex-works. These local market welded pipe prices include 17 percent VAT. Traders in Shanghai are offering Q215-Q235 welded pipes made to GB/T3091 at around RMB 3,920-4,050/mt ($623-644/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,820-3,870/mt ($607-615/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $700-740/mt FOB on actual weight basis.