Given the decrease in feedstock and raw material prices and weak demand, Chinese welded pipe producers have had to cut their offers further. In particular, domestic quotations have decreased by RMB 30-70/mt (maximum $6/mt) over the past two weeks, while export quotations for Chinese welded pipes have decreased by $20-30/mt over the same period. Besides, Chinese welded pipe makers are reluctant to cut their prices further, citing the forecast growth of feedstock prices, as well as anticipated better demand with the arrival of warmer weather. However, market sentiment remains tense and the mood in the market is still bearish.
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 3,350-3,500/mt ($540-565/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 2,800-3,070/mt ($452-496/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 2,600-2,700/mt ($420-436/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,520-2,600/mt ($407-420/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $420-450/mt FOB on actual weight basis.
$1 = RMB 6.19