China's domestic welded pipe market has remained under downward pressure over the past two weeks amid weakened market sentiment and slack demand. Domestic prices for welded pipes in China have gone down by around RMB 20-50/mt ($2-7/mt) over the past two weeks. Export prices for Chinese welded pipes have remained stable, though demand in major sales outlets is generally weak. Market players believe market conditions will hardly improve in the near term, considering also the expected slowdown in activity due to the approach of the Spring Festival holiday.
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 ($655-688/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 3,600-3,680/mt ($590-603/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,400-3,470/mt ($557-568/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 6.1