The welded pipe market in China has stabilized over the past week due to the uncertainty in the market. Domestic and export quotations of Chinese welded pipes have remained at previous levels as demand after the Chinese New Year holiday from both local and foreign customers has been sluggish - quite different from traders' expectations. Market participants still hope to see a recovery of demand with the arrival of the warmer spring weather. The prices of raw materials for steelmaking such as iron ore, metallurgical coke and scrap are expected to continue to climb up, thereby pushing welded pipe prices up further. The major steel consuming sectors such as construction, machinery, transportation and communication, electronic household appliances and shipbuilding are expected to indicate positive progress, thus fueling demand for welded pipes in China. Meanwhile, Chinese welded pipe suppliers will face strong competition in the overseas markets. Chinese pipe makers are still holding back supplies as they wait for higher prices, though traders are less inclined to do so.
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 4,800-5,150/mt ($730-780/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,300-5,600/mt ($805-850/mt) ex-works. These local market welded pipe prices include 17 percent VAT.
Current export prices of Chinese welded pipes, 2"-6" grade B according to ASTM A53, are varying at around $780-850/mt FOB on actual weight basis.