Welded pipe prices in China have remained relatively stable over the past two weeks amid a sluggish recovery in domestic demand. Market participants state that downstream demand from the construction sector is improving in line with better weather conditions, while end-user demand is growing at a slow pace. Meanwhile, the deteriorating global economy and currency fluctuations contribute to a more difficult situation for China's welded pipe exports. With the weather becoming better, the domestic welded pipe market is expected to gradually enter its peak consumption season. However, given the ongoing sluggishness of the market, Chinese mills have little chance of increasing their prices in the coming short-term period. At the same time, raw material prices have not shown any notable drops, and so Chinese pipe makers do not plan to cut their prices substantially. Market players expect that welded pipe prices will probably remain at around their current levels.
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 4,200-4,400/mt ($665-695/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 4,950-5,100/mt ($785-810/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 $780-800/mt FOB on actual weight basis.