Activity in the Chinese domestic welded pipe market has slowed down over the past two weeks due to flagging demand amid cold weather and tighter credit availability towards the end of the year. Domestic prices for welded pipes in China have gone down by around RMB 20-50/mt ($3-9/mt) over the past two weeks. Export prices for Chinese welded pipes have remained in the previous range. The Chinese welded pipe market is unlikely to witness major changes in the short run, most market players believe. Weak market sentiment will likely force Chinese welded pipes suppliers to refrain from raising their quotations.
Current offers of locally produced 2"-6" welded pipes of grade B as per ASTM A53 are being given to the Chinese domestic market at an average of RMB 4,050-4,200/mt ($662-686/mt) ex-works. These local market welded pipe prices include 17 percent VAT. Traders in Shanghai are offering Q215-Q235 welded pipes made to GB/T3091 at around RMB 3,650-3,700/mt ($596-605/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,430-3,510/mt ($560-574/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $620-650/mt FOB on actual weight basis. Export offers of 2"-10" welded pipes of grade X52 made to API 5L from Chinese producers are at $730-750/mt FOB.
$1 = RMB 6.12