Chinese welded pipe market makes no progress

welded_pipe_ArabMetal

 

Asian Metal – Prices for welded pipe with main grades in China’s major cities remain stable over two weeks ago, but traders’ sales performance has not recovered to the normal level yet.

A welded pipe trader in Tianjin reveals to Asian Metal that the price for the main grade Q235 114 x 3.75mm from Youfa Pipe is RMB2,440/t (USD390/t), the same as last trading day.

According to the source, Friday is the second day for work after the Spring Festival holiday. With the normal weekly sales volume of about 800t, the source informs that only several inquiries were received in the day. About the coming market, the source predicts a stable market price as strip mills keep offers unchanged after the Spring Festival holiday.

Another welded pipe trader in Shanghai offers RMB2,700/t (USD431/t) for the above grade from Youfa Steel, unchanged over two weeks ago.

Noted by the source, no new materials arrived at port in past two weeks, so only some main grades are in supply with spot materials for now. “In coming two weeks, I will have 2,000-3,000t of new products delivered from the mill,” he reports, choosing to watch the market cautiously with stable offers for now. As for the price trend in the coming week, he shows little confidence.

Another welded pipe trader in Guangzhou informs quotes RMB2,750/t (USD439/t) for above grade from pipe plants in Tianjin, unchanged compared with last trading day.

“Some direct agents of mills give no new offers after the long holiday as the price policy has not been announced by the mill,” he says, holding a low inventory. Before the Chine New Year holiday, many strip mills and pipe makers overhaul production lines as the profit room is slim. Though prices for steel billet with main grade in North China remained stable at RMB1,990/t (USD318/t), the source is still unconfident of the coming market because of weak demand.