Prices for welded pipes have stabilized in China over the past two weeks. Despite some upward movements in the raw material markets, demand for welded pipes remains sluggish amid a slowdown in construction activity. Chinese market participants are still taking a cautious approach as demand will unlikely rebound before the Chinese New Year holiday at the end of January. The uncertainty surrounding the global economy has led to a cautious export market view on welded pipes in the coming period. The market is expected to be characterized by a certain degree of weakness in the short term.
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 4,300-4,700/mt ($680-740/mt) ex-works, while 2"-6" welded pipes of grade B as per ASTM A53 are at RMB 5,200-5,400/mt ($820-850/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 $760-780/mt FOB on actual weight basis, while 10"-18" welded pipes are at $780-880/mt FOB.