Buying activity in the Chinese market for welded pipes has been slack over the past two weeks ahead of the week-long National Day holiday (October 1-7). Welded pipe suppliers in China have cut their domestic offers by around RMB 30-100/mt ($5-16/mt) in the past two weeks given the persistent sluggishness in the domestic market, while export quotations of Chinese welded pipes have moved down by a maximum of $10/mt over the period under review amid very poor foreign demand. According to market participants, welded pipe suppliers will likely have to cut prices again after the holiday due to the anticipated price decline for hot rolled (HR) flats, lackluster demand from both local and overseas buyers, and increasing supply.
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 4,200-4,350/mt ($686-711/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 3,650-3,880/mt ($596-634/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,590-3,720/mt ($587-608/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $630-680/mt FOB on actual weight basis.
$1 = RMB 6.12