Prices gradually rising in Chinese welded pipe market

Most Chinese welded pipe producers continue to lift their prices slightly due to higher raw material costs and their optimistic outlook toward the future market. Domestic welded pipe prices have gone up by RMB 50-100/mt ($5-15/mt) over the past two weeks. However, the global welded pipe market is still sluggish due to the uncertain economic situation, and Chinese welded pipe suppliers are finding it difficult to increase their offers. The lower end of Chinese export prices for welded pipes has gone up by $20/mt over the analyzed period, but the upper end has remained at the previous level. Chinese welded pipe makers will likely continue to raise their offers later this month, expecting better demand during the traditional peak season. Meanwhile, domestic demand may be limited as local market players face increased financial pressure following the tightening of China's monetary policy. Also, the latest government data on manufacturing activity showed weakness in the export sector. Accordingly, the demand recovery may be very slow, and this will likely restrict the increases in welded pipe prices.
 
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 4,900-5,200/mt ($765-815/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,600-5,700/mt ($875-890/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
 
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $840-900/mt FOB on actual weight basis, while 10"-18" welded pipes are at $870-970/mt FOB.