The seamless pipe market in China has not shown any signs of picking up over the past two weeks. Despite this, Chinese producers of seamless pipes have started to lift their quotations, mainly pushed by the increasing cost of round billets. Thus, domestic quotations of seamless pipes have increased by RMB 100/mt ($10-20/mt) over the past two weeks, while export prices have gone up by $10-40/mt. This latest round of price rises is a direct result of the rebound in the domestic steel market last week. However, it is still too early to talk about a full recovery since market conditions are characterized by uncertainty and demand for seamless pipes in the domestic and international markets remains weak.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are varying at around RMB 5,300-5,600/mt ($780-830/mt) ex-works, including 17 percent VAT.
In June this year China produced 2.3 million mt of seamless pipes, 20.2 percent higher than in June 2009. Total production for the first half of this year was 11.96 million mt, up 15.8 percent over the same period last year.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $810-875/mt FOB, while 16"-20" pipes are at $875-900/mt FOB. SteelOrbis has learned of export offers of seamless pipes with diameters of 60.3- 88.9 mm of steel grade 37.0 made to DIN 2448/1629 at about $875-925/mt FOB.
Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,070-1,150/mt FOB, while quotations for 5 ½"-13 3/8" casing are at $950-1,030/mt FOB.