Business activity has continued to slow down in the Chinese welded pipe market over the past two weeks amid chilly weather and tight funds in the market, while buying activity in the key export markets remains feeble. Chinese welded pipe suppliers have cut their offers to local buyers by a maximum of RMB 500/mt ($9/mt) over the past two weeks reflecting their cautious attitude toward the future market, while export prices have declined by a maximum of $20/mt. Most market participants do not foresee any strong price increase in the short term given the backdrop of the off-peak consumption season.
Current offers of locally produced 2"-6" welded pipes of grade B as per ASTM A53 are being given to the Chinese domestic market at an average of RMB 4,200-4,250/mt ($668-676/mt) ex-works. These local market welded pipe prices include 17 percent VAT. Traders in Shanghai are offering Q215-Q235 welded pipes made to GB/T3091 at around RMB 3,800-3,950/mt ($604-628/mt) ex-warehouse.
Current export prices of welded pipes from large mills, 2"-10" grade B according to ASTM A53, have stayed at around $700-730/mt FOB on actual weight basis. Export quotations of 36"-48" LSAW (longitudinal submerged-arc welded steel) pipes of grade B as per API 5L (PSL 2, bevelled ends) are at about $850-900/mt FOB, while 30"-32" LSAW pipes of grade X52 as per API 5L (PSL 2, bevelled ends) are at around $820-850/mt FOB.