The Chinese welded pipe market has so far been following a relatively stable trend, though it has been indicating some signs of weakness, mainly due to low demand. Traders are generally unwilling to order in new materials due to the approach of the off-peak season. Nevertheless, Chinese welded pipe makers have maintained their domestic and export prices at the levels of two weeks ago as raw material costs remain high.
Currently, the Chinese hot rolled coil (HRC) market is witnessing a slight overall drop in prices, while downstream demand remains sluggish. This may cause a softening in welded pipe prices in the short-term period. Chinese welded pipe prices may remain in a volatile state in the near future as the market is affected by relatively high steel output, by the slowdown in demand growth, as well as by weaknesses in the international market. Market players believe that rising energy prices and tighter monetary policies will put the steel sector under increasing pressure in the coming months.
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 4,800-5,100/mt ($740-785/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,400-5,600/mt ($830-865/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $780-810/mt FOB on actual weight basis.