China's seamless pipe market shows no signs of improvement

Wednesday, 29 May 2013 17:07:50 (GMT+3)   |  

China's seamless pipe market has shown no sign of recovery over the past two weeks amid downbeat sentiment. Meanwhile, domestic mills' prices for seamless pipes have remained stable, while stockists' quotations have declined by RMB 50-100/mt ($6-14/mt) over the past two weeks in response to the weak steel futures market. At the same time, export offers of Chinese seamless pipes have decreased by a maximum of $10/mt against a background of poor demand from overseas buyers. Market operators believe Chinese seamless pipe prices are unlikely to pick up in the short run amid feeble demand and an anticipated downturn in raw material prices.

Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,000/mt ($938-970/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 4,600-5,000/mt ($744-809/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,100-4,350/mt ($663-704/mt) ex-warehouse, including 17 percent VAT.


Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $690-750/mt FOB, 14"-20" pipes are quoted at around $780-810/mt FOB, while 20"-24" pipe offers can be heard at levels of $1,050-1,070/mt FOB.

Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks can be heard at around $670-720/mt FOB, while 12"-14" pipes can be offered from stocks at about $760-780/mt FOB.

SteelOrbis has heard that offers of 4 1/2"- 13 3/8" casing pipes of J55 made to API 5CT are at levels of $900-950/mt FOB.


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