LSAW (straight seam submerged arc welding) steel pipes are widely used in oil pipeline construction, and their price trends are affected by many factors. In China, the price of LSAW Steel Pipes has shown a complex fluctuation trend in recent years.

Recent price performance

Since 2025, the overall price of LSAW steel pipes has been relatively stable but slightly fluctuating. From the raw material side, the market prices of billets, strip steel, etc. fell slightly in early March 2025. For example, on March 7, the ex-factory price of ordinary billets of the leading steel mills in Qian'an, Tangshan, was 3040 yuan including tax, a decrease of 20 yuan from the previous trading day; in terms of the ex-factory price of Tangshan Ruifeng coils including tax, the prices of different specifications of products were in the range of 3290-3300 yuan, a decrease of 30 yuan from the previous trading day. The fluctuation of raw material prices has a direct impact on the cost of LSAW steel pipes.

In terms of finished product prices, taking the Xi'an market as an example, as of March 7, 2025, the monitoring data of the Lange Steel Cloud Business Platform showed that the tax-inclusive price of 4-inch (3.75) welded pipes was 3,690 yuan for Youfa and 3,660 yuan for Zhengda, which was the same as the price on the previous trading day. Although the pipe factory had previously reported price increases, due to high market inventory, traders did not generally follow the increase, and some even slightly lowered prices to promote transactions.

Factors affecting price trends

1. Raw material cost: Steel is the main raw material for LSAW steel pipes, and its price fluctuations directly affect the cost of LSAW steel pipes. Changes in the prices of raw materials such as iron ore and coke will be transmitted to steel prices, which in turn affect the price of LSAW steel pipes. When the supply of iron ore is tight or the price of coke rises, the cost of steel production rises, and the price of LSAW steel pipes tends to rise accordingly. For example, if the price of iron ore rises due to reasons such as reduced production in mines, steel mills will increase the ex-factory price of steel to ensure profits, and the cost of purchasing steel for LSAW steel pipe manufacturers will increase, which will eventually lead to an increase in the price of LSAW steel pipes.

2. Market supply and demand: On the demand side, the progress of oil pipeline construction projects has a significant impact on the demand for LSAW steel pipes. In recent years, with the continuous advancement of China's domestic oil and gas resource development and transportation pipeline construction, the demand for LSAW steel pipes has been supported to a certain extent. In particular, some large-scale energy projects have huge demand for LSAW steel pipes. However, if the progress of project construction slows down or the number of newly started projects decreases, demand will weaken. From the supply side, the production capacity and output of LSAW steel pipe manufacturers affect market supply. If the company's production capacity expands too fast and demand growth is limited, the market will be oversupplied and prices will face downward pressure; conversely, when supply is insufficient, prices will rise.

3. Macroeconomics and policies: The macroeconomic situation affects corporate investment and infrastructure construction. When the economy grows faster, energy demand increases, driving investment in oil pipeline construction and promoting the demand and price of LSAW steel pipes. In terms of policies, the government's environmental protection policies and industrial policies for the steel industry affect the production and operation costs and market structure of enterprises. For example, strict environmental protection policies may cause some small factories that do not meet environmental protection standards to reduce or stop production, reduce market supply, and drive up prices; while policies that encourage the steel industry to optimize and upgrade and improve capacity utilization may affect market supply and demand and price trends in the long run.

4. International trade situation: International trade frictions also have an impact on LSAW steel pipe prices. China is a major steel producer and exporter. If other countries impose tariffs on Chinese steel products, it will inhibit China's LSAW steel pipe exports, leading to increased supply and falling prices in the Chinese domestic market. If the US tariffs on China officially take effect, the tariffs on Chinese imports will be superimposed on the 10% imposed on February 4, with a cumulative tariff of 20%, which will pose challenges to China's steel exports and affect the price trend of LSAW steel pipes.

Price trend outlook

In the short term, entering the traditional "golden March" season, market demand is expected to be gradually released, but due to the current high market inventory and slow demand recovery, the price of LSAW steel pipes has limited momentum for price increases and is expected to remain stable or in a narrow range. If the subsequent market inventory decline speeds up and demand rebounds significantly, prices are expected to stabilize and rebound.

In the long run, with the continued growth of China's domestic energy demand and the advancement of infrastructure construction such as oil pipelines, the demand for LSAW steel pipes has certain support. But at the same time, if the problem of overcapacity in the steel industry is not effectively solved, and the uncertainty of the international trade situation, it will still have an impact on the price trend. Under the guidance of industrial policies, the structural adjustment and transformation and upgrading of the steel industry will also change the market supply and demand relationship, and thus affect the future trend of LSAW steel pipe prices.