Activity in the Chinese seamless pipe market has continued to be slow as downstream demand has not been released. Domestic prices of seamless pipes in China have declined by a maximum of RMB 50/mt ($8/mt) over the past two weeks. Over the same period, Chinese export prices for seamless pipes have remained unchanged though exporters are facing mounting pressure from weakening overseas demand. Market participants are worried about the market performance throughout the rest of the year amid the difficult economic situation, decreasing temperatures, the off-season for business, and weak cost support.
Domestic prices of 4"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 3,900-4,300/mt ($637-703/mt) ex-works, including 17 percent VAT.
Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,300-3,600/mt ($539-588/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,250-3,550/mt ($531-580/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" Sch40 grade B seamless pipes according to ASTM A106/API 5L are on average at $560-580/mt FOB on theoretical weight basis.
$1 = RMB 6.12