Although demand for Chinese welded pipes from both foreign and local customers remains low, domestic and export prices of the material have risen because of higher prices for raw materials. In particular, domestic quotations have increased by RMB 30-100/mt ($5-16/mt) over the past two weeks, while export quotations for Chinese welded pipes have moved up by a maximum of $10/mt over the same period. However, the market performance is still unsatisfactory despite what has traditionally been the peak season for business, due to slack consumption in downstream industries. Market sources lack confidence in the prospects for the market in the coming period, but believe Chinese pipe producers may keep their offers unchanged in the near term considering firm costs.
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 3,400-3,500/mt ($549-565/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 2,800-3,100/mt ($452-501/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 2,650-2,800/mt ($428-452/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,520-2,690/mt ($407-435/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $430-450/mt FOB on actual weight basis.
$1 = RMB 6.2