China's welded pipe market is indicating a gradual upward movement after the Spring Festival holiday. The situation in the domestic market is showing some improvement as business activity resumes, while foreign buyers are still not very active. Domestic quotations have increased by RMB 20-50/mt ($18-26/mt) over the past two weeks mainly on the back of more expensive raw materials, while export quotations of Chinese welded pipes have increased by a maximum of $10/mt over the past two weeks.
Welded pipe prices in the Chinese market may continue to move on a rising trend given increasing feedstock quotations, the anticipated rebound in demand from both local and foreign buyers, and positive macroeconomic developments.
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 4,350-4,500/mt ($692-716/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 3,930-4,050/mt ($625-644/mt) ex-warehouse, while stockists in the cities of Tianjin and Beijing are offering similar pipes at RMB 3,800-3,900/mt ($604-620/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $730-750/mt FOB on actual weight basis.