China's domestic welded pipe market has witnessed a downward trend over the past two weeks in some regions of the country affected by soft demand and lower raw material prices, while China's export prices for welded pipes have remained largely unchanged against a backdrop of poor demand. Domestic prices of welded pipes in China have decreased by RMB 50-100/mt over the period under review. Improvements in the Chinese welded pipe market appear unlikely in the short run. Most market players believe that welded pipe prices in China may indicate slight corrections in the coming period amid low demand from the international market and the unsatisfactory domestic market performance.
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 4,100-4,200/mt ($657-673/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 3,550-3,630/mt ($569-582/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,330-3,420/mt ($534-548/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $600-630/mt FOB on actual weight basis.
$1 = RMB 6.24