In tandem with falling flat steel prices and slack demand, welded pipe quotations in China have continued to soften over the past two weeks. Accordingly, domestic prices of Chinese welded pipes have decreased by around RMB 100/mt ($16-17/mt) in the given period, while export offers have gone down by $10-20/mt. Foreign demand is unlikely to improve over the summer due to ongoing global economic difficulties, while buying activity in the domestic market will also remain weak due to the sluggishness of the domestic real estate and construction sectors. Given the weak demand for Chinese welded pipes from both foreign and local buyers and the high levels of inventories, the downward price trend will likely continue in the short term.
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 3,900-4,000/mt ($615-631/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,800-4,900/mt ($757-773/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of welded pipes from large mills, 2"-8" grade B according to ASTM A53, are varying at around $730-770/mt FOB on actual weight basis, while export offers of smaller mills are standing at $650-680/mt FOB. Quotations of 1/2"-2" hot dip galvanized welded pipes are being given to foreign customers at $750-870/mt FOB.