During the week ending March 4, average Chinese steel pipe export offer prices have moved up. At present, export offers for welded pipe given by Chinese suppliers are in the range of $485-495/mt FOB, increasing by $5/mt on average compared to February 25, while export offers for API 5L seamless pipe given by Chinese suppliers are at $500-510/mt FOB, for May shipment, up by $10/mt on average compared to February 25.
| Product name | Quality | Spec. | Price ($/mt) FOB | Weekly change ($/mt) |
| API 5L seamless pipe | Gr.B | 2’’-6’’ Std | 505 | +10 |
| Seamless pipe, casing (hot rolled forming) | J55 | 3’’-8’’ Std | 505 | +10 |
| Seamless pipe, tubing (cold drawn forming) | ST37 | < 3’’ Std | 650 | - |
| Welded pipes | Gr.B | 2’’-6’’ Std | 490 | +5 |
During the given week, steel pipe prices in the Chinese domestic market have moved up amid the appreciation of the Chinese currency. Downstream construction sites have not completely resumed construction activities yet, resulting in slack demand for steel pipes. Meanwhile, the production of steel pipes has increased slightly in the given week. Steelmakers in northern China have been required to cut their outputs during the Two Sessions meetings in Beijing, which will result in tight supply of steel pipes and bolster pipe prices.
However, the closure of the Strait of Hormuz will exert a negative impact on China’s exports as Saudi Arabia, the UAE and Iraq are major export destinations for ex-China steel pipes, which may in turn negatively affect the Chinese domestic market. It is expected that steel pipe prices in the Chinese domestic market will rebound slightly in the coming week.
As of March 4, HRC futures at Shanghai Futures Exchange are standing at RMB 3,212/mt ($467/mt), decreasing by RMB 24/mt ($3.5/mt) or 0.7 percent since February 25, while remaining stable compared to the previous trading day, March 3.
$1 = RMB 6.9124
