February 2011 | Welded steel tube & pipe
Chinese mills pass on higher input costs: Asia Market Analysis
xport prices for X42 API pipe are now a minimum of $820/tonne, with first-tier suppliers looking for as much as $880/tonne fob.
Chinese ERW mills that use either HR coil or narrow strip from billet are passing on their higher input costs to domestic and export customers. Mills reported keen interest in domestic sales after the New Year, but with higher prices, there is some reluctance to commit to paying more. However, distributors have raised prices of inventory to current ex-mill prices so there is little option for buyers to try and secure lower prices from already manufactured pipe. The latest spot prices are around RMB5,150/tonne ($670/tonne ex-VAT) for ERW A53 equivalent. This leaves a very low margin over input costs, but the market continues to be characterised by over-supply and aggressive pricing and any attempt to push spreads higher will be defeated.
Export prices for X42 API pipe are now a minimum of $820/tonne, with first-tier suppliers looking for as much as $880/tonne fob. Middle East consumers are...
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