Welded pipe prices in China have risen sharply over the past two weeks supported by higher narrow strip prices and in response to the reduction in output by a number of steel mills in line with central government policy on energy saving. Thus, domestic quotations of welded pipes in China have increased by RMB 100-200/mt ($15-30/mt) over the past two weeks, while export prices have moved up by $30-50/mt. The current situation as regards government policy and reductions in output provides greater room for further increases in domestic steel prices in the short term. Furthermore, the busy season for steel consumption is coming and it is possible that restocking will pick up speed, thus providing momentum for steel prices to climb.
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 ($660-690/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 5,100-5,300/mt ($750-780/mt) ex-works.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $790-810/mt FOB on actual weight basis.
Exports of welded pipes from China declined in July due to weak demand over the slow summer season. According to the CISA, in July China exported 229,324 mt of welded pipes, indicating a decrease of 18.3 percent compared to the June level and up 14.7 percent year on year. China's total welded pipe exports in the first seven months of this year reached 1.565 million mt, up 3.4 percent year on year.