After the Spring Festival welded pipe suppliers in China came back to the market with new hopes and raised their welded pipe quotations despite the continuing weakness of demand. Over the past two weeks domestic prices for Chinese welded pipes have increased by RMB 1,000/mt ($15/mt), while export offers have risen by $20-30/mt. The main reason for the price increase by Chinese welded pipe producers are the rising quotations for flat products in the Chinese market. Demand for welded pipe is expected to recover in the spring when construction projects are resumed. However, the high welded pipe inventory in the Chinese market is still a cause of concern and may limit price increases by pipe manufacturers. In the coming period, fluctuations in welded pipe prices look more likely than an upward trend taking into consideration current high inventory, labor force shortages after the Spring Festival and uncertainties in relation to HRC prices.
Current domestic prices of Chinese ERW pipes 2"-6" Q215-Q235 grade are at RMB 4,600-4,800/mt ($675-705/mt) ex-works. These local market prices include 17 percent VAT and are on actual weight basis.
Export offers of Chinese ERW pipes, 2"-6" with 4-5 mm wall thickness of steel grade B according to ASTM A53/API 5L, are being given at about $650-680/mt FOB.