During the week ending April 16, average Chinese steel pipe export offer prices have moved sideways. At present, export offers for welded pipe given by Chinese suppliers are in the range of $450-470/mt FOB, remaining stable compared to April 9, while export offers for API 5L seamless pipe given by Chinese suppliers are at $490-500/mt FOB, June shipment, moving sideways compared to April 9.
Product name |
Quality |
Spec. |
Price ($/mt) FOB |
Weekly change ($/mt) |
API 5L seamless pipe |
Gr.B |
2’’-6’’ Std |
495 |
- |
Seamless pipe, casing (hot rolled forming) |
J55 |
3’’-8’’ Std |
495 |
- |
Seamless pipe, tubing (cold drawn forming) |
ST37 |
< 3’’ Std |
660 |
- |
Welded pipes |
Gr.B |
2’’-6’’ Std |
460 |
- |
During the given week, steel pipe prices in the Chinese domestic market have remained unchanged amid just slight changes in HRC futures prices. Demand from downstream users has been slack amid the prevailing cautious sentiments, especially against the background of the escalating tariff issue between the US and China. On April 15, a “fact sheet” posted on the White House website stated, “China now faces tariffs of up to 245 percent on imports into the US.” However, China stated that there will be no winners in a tariff war or a trade war, and that China is not willing to fight, but is by no means afraid to do so.
Chinese steel pipe producers have chosen to keep their ex-works prices stable, though most of them have held a wait-and-stance as regards the future prospects for the market. The supply and demand fundamentals in the steel pipe market are in a weak equilibrium. It is thought that steel pipe prices in the Chinese domestic market will likely move sideways in the coming week.
As of April 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,205/mt ($445/mt), decreasing by RMB 3/mt ($0.4/mt) or 0.09 percent since April 9, while down 1.05 percent compared to the previous trading day, April 15.
$1 = RMB 7.2066
