Demand for Chinese welded pipes from both local and foreign consumers remains rather weak. Downstream demand has shrunk in real estate, where the Chinese government's housing control measures have dampened the demand for houses, as well as in the automotive and household appliance sectors. Over the past two weeks, export prices for Chinese ERW pipes have not changed, while domestic quotations have dropped by RMB 100/mt ($15-20/mt) following a decline in prices of narrow strip. For example, Benxi Iron and Steel Co. has decreased its HRC prices by RMB 400/mt ($60/mt), Wuhan Iron and Steel Corporation has cut its offers for HRC by RMB 300/mt ($45/mt) for July delivery, Baosteel has reduced its HRC prices by RMB 500/mt ($70-75/mt), while Angang has decreased its offers for HR coils by RMB 350/mt ($50/mt) for July delivery as compared with the levels for June. China's HRC market is expected to see further downward fluctuations in the short term, which, combined with slack demand, will drag down welded pipe prices.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the domestic market at an average of RMB 4,800-5,100/mt ($700-745/mt) ex-works, compared to RMB 4,900-5,200/mt ($720-760/mt) ex-works two weeks ago. These local market prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53/API 5L, are varying at around $730-770/mt FOB on actual weight basis.