Chinese welded pipe producers are still forced to cut their prices amid the sluggishness of construction activity and price declines for feedstock material in the domestic market. Demand from foreign buyers has also slowed significantly in view of the vacation season and the economic slowdown. Chinese welded pipe producers have decreased their domestic prices by RMB 100/mt ($17/mt) over the past two weeks, while export offers have gone down by $10-20/mt. Demand for Chinese welded pipes is not expected to recover in the coming period neither in the domestic nor in the export markets, and prices are likely to continue to fluctuate at low levels in consideration of softening demand and the downward trend in raw material prices.
Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the Chinese domestic market at an average of RMB 3,700-3,900/mt ($585-616/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,500-4,700/mt ($711-743/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of welded pipes from large mills, 2"-8" grade B according to ASTM A53, are varying at around $690-740/mt FOB on actual weight basis, while export offers of smaller mills are standing at $640-660/mt FOB. Export quotations of 1/2"-6" hot dip galvanized pipes are at around $740-850/mt FOB.