Sluggish demand continues to weigh on China's welded pipe market

Sentiment in the Chinese welded pipe market has remained subdued over the past two weeks. Most market participants have adopted a wait-and-see approach amid the uncertainty in the market. Over the past two weeks, Chinese suppliers have reduced their domestic welded pipe prices by around RMB 50/mt ($8/mt), while export offers have not been revised. Chinese suppliers of welded pipes will likely try to keep their prices stable in the coming period, though ongoing poor demand and weak fundamentals will continue to weigh on the market.
 
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 4,000-4,150/mt ($650-671/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 3,500-3,650/mt ($569-593/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,310-3,400/mt ($538-553/mt) ex-warehouse.
 
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $620-650/mt FOB on actual weight basis.
 
$1 = RMB 6.15