The Chinese welded pipe market continues to suffer from weak demand. Domestic quotations of welded pipes in China have remained within the previous price range in the current quiet market situation, with only the lower end moving up by RMB 100/mt ($20/mt) over the past two weeks. At the same time, export prices have moved down by $20-30/mt due to low interest from foreign buyers. Chinese pipe makers are pessimistic about the market prospects for the fourth quarter. October is the last month of the traditional peak season for steel consumption. The low season is approaching in line with changes in weather conditions. Sliding raw material prices mean a lack of strong support for welded pipe prices in the short term. In addition, the strengthening of real estate control measures will likely have some impact on the steel market, and pipe prices may fall back in the fourth quarter.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the domestic market at an average of RMB 4,500-4,700/mt ($680-710/mt) ex-works. These local market prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $750-780/mt FOB on actual weight basis.