The Chinese welded pipe market is still quiet. Domestic and export quotations of Chinese welded pipes have remained unchanged over the past two weeks amid stable domestic prices for hot rolled coils. Market players report that the recovery of domestic demand is still too slow, even though the central bank of China cut the bank deposit reserve ratio recently, which should improve liquidity. Meanwhile, the Chinese welded pipe market may edge up amid corrections in the short term with limited price increases, in a context of optimism on the prospects for the market in March. Market insiders believe the welded pipe export volume will rise gradually to ease oversupply pressure in the domestic market. At the same time, the scheduled construction of several large pipeline projects will boost demand for welded pipes in the domestic market.
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 4,000-4,100/mt ($635-650/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,900-5,000/mt ($780-795/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-8" grade B according to ASTM A53, are varying at around $750-780/mt FOB on actual weight basis, while 10"-18" welded pipes are at $765-860/mt FOB.