Seamless pipe demand is gradually improving in the Chinese market on the back of improved buyer confidence. Market players expect that downstream demand will pick up as the weather gets warmer. However, due to the uncertainty in the global economy and tight controls in the domestic market, Chinese seamless pipe suppliers have started to increase their quotations very carefully. In particular, the lower end of domestic prices has moved up by RMB 100-200/mt ($10-30/mt) over the past two weeks, while the upper end has remained unchanged. Export prices of Chinese seamless pipes have increased by $20-30/mt over the period under review. In the short term, Chinese seamless pipe producers will likely keep their prices stable amid firm billet prices and will wait for the market to recover.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,200-5,300/mt ($820-835/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,200-6,300/mt ($980-995/mt) ex-works.
Current export offers of seamless pipes from most Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $850-930/mt FOB. However, offers of the same pipes from first tier pipe mills are standing at $950-980/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,020-1,050/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,050-1,100/mt FOB.