Demand in the welded pipe market in China has seen very slow improvement on the back of ongoing tight liquidity and the continuing sluggishness of the construction sector. However, some pipe mills have attempted to increase their quotations due to higher raw material costs. Over the past two weeks, domestic prices of Chinese welded pipes have increased by RMB 50-100/mt ($10-20/mt), while export offers have gone up by $10-20/mt. Market players believe that expected stronger demand from foreign buyers and the upturn in flat steel quotations will support further growth in welded pipe prices. However, existing oversupply in the market will prevent Chinese welded pipe producers from achieving significant price increases.
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 4,100-4,300/mt ($650-680/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,950-5,050/mt ($780-800/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $750-790/mt FOB on actual weight basis.