Demand for Chinese welded pipes from both local and foreign buyers has not improved yet. However, most Chinese welded pipe producers have pushed up their prices in anticipation of better demand and also on the back of the recent upward movements in domestic hot rolled coil (HRC) quotations. Over the past two weeks, domestic prices of Chinese welded pipes have increased by RMB 50-100/mt ($10-15/mt), while export offers have gone up by $10-30/mt. Although demand for Chinese welded pipes is picking up very slowly, market insiders expect some slight price rises for welded pipes later this month as prices of feedstock material remain on an upward track. However, the uncertainty in the global economy and the government's control of the real estate market may negatively affect trading activity and limit increases of welded pipe prices.
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 5,000-5,100/mt ($790-810/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.