Despite the seasonal slump in buying activity in the domestic and export markets as well as rather high stock levels, the welded pipe market in China has presented an upward trend over the past two weeks on the back of the soaring costs of flat steel products. Within the past two weeks, domestic prices for welded pipes have risen by RMB 200/mt ($30/mt), while export prices have climbed up by $20/mt. The rising hot rolled coil (HRC) prices have caused production costs to go up, forcing pipe mills to lift their prices as a result. According to market insiders, it is expected that the welded pipe market will prolong its steady rising movement amid slight fluctuations in the coming weeks. Although market prices of HRC have stopped rising over the past three days, they may enter a new increasing phase due to rising iron ore prices, thereby continuing to drive up welded pipe prices.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the domestic market at an average of RMB 4,300-4,500/mt ($635-665/mt) ex-works. These local market prices include 17 percent VAT. Domestic prices of ERW pipes of grade B made to ASTM A53/API 5L are at around RMB 4,800-5,200/mt ($710-770/mt) ex-works.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $740-780/mt FOB on actual weight basis.