Business activity in the Chinese welded pipe market has remained slack amid tepid downstream demand. However, most Chinese suppliers have not revised their domestic and export prices for welded pipes over the past two weeks as market participants have been on a week-long break for the National Day Holiday. Only traders from Tianjin and Beijing have cut their prices, by a margin of RMB 20-80/mt ($3-13/mt). The Chinese welded pipe market is less likely to rebound in the short run amid sluggish market sentiment against the backdrop of slower economic growth, the steel market downturn, tightened bank credit, and a drop in exports.
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 3,600-3,800/mt ($587-619/mt) ex-works, while domestic offers of welded pipes of grade Q195-235 are at levels of RMB 3,000-3,350/mt ($489-546/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 3,000-3,250/mt ($489-530/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 2,920-3,070/mt ($476-500/mt) ex-warehouse.
Current export prices of welded pipes from large Chinese mills, 2"-10" grade B according to ASTM A53, are at around $540-580/mt FOB on actual weight basis.
$1 = RMB 6.13