Demand for Chinese welded pipes from both local and foreign buyers keeps weakening ahead of the New Year holidays and amid cold weather. Construction activity has ground to a halt in northern China, while production and sales of automobiles, ships and machinery are all on a downtrend. The global economic situation remains grim, resulting in the weakening of demand from foreign buyers. Domestic prices for locally produced welded pipes have declined by a minimum of RMB 100/mt ($20/mt) over the past two weeks, while export offers have decreased by a maximum of $10/mt.
Market confidence is too weak to provide support for higher welded pipe prices in the coming period. Market insiders expect to see a decline in buying activity amid the New Year and Chinese Spring Festival holidays. However, given the stabilization of feedstock prices, Chinese welded pipe suppliers hope to keep their prices more or less stable until the end of the national holidays in early February. In particular, Baosteel and Anshan Iron & Steel have not changed their prices of hot rolled coil (HRC) for January orders compared to quotations for December rolling.
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 4,200-4,300/mt ($660-675/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,000-5,100/mt ($785-800/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 $750-780/mt FOB on actual weight basis, while 10"-18" welded pipes are at $770-880/mt FOB.