Weak sentiment in local Chinese welded pipe market

Activity in the welded pipe market in China has remained lukewarm amid weak sentiments. Over the past two weeks, China's welded pipe market has been stable, with Chinese suppliers keeping prices unchanged while domestic and overseas buying interest has remained weak. Market participants generally have a negative outlook on the short-term market prospects given the ongoing sluggishness of demand, tight liquidity  and elevated stockpiles.
 
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 4,000-4,200/mt ($650-683/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 3,400-3,450/mt ($553-561/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