The Chinese seamless pipe market has shown no signs of improvement over the past three weeks affected by hot temperatures and rainy weather in many regions and by the summer vacation season. Most Chinese seamless pipe producers have kept their domestic quotations unchanged over the period in question, unwilling to cut prices in view of steady production costs. However, local buyers are reluctant to replenish their inventories in quiet market conditions. Export prices of Chinese seamless pipes have declined by around $10-15/mt over the past three weeks amid lingering concerns over the outlook for seamless pipes in the summer off-season. Meanwhile, market insiders believe little room remains for further price declines, considering the current low price levels.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,100/mt ($957-973/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 5,000-5,100/mt ($797-813/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,850-4,050/mt ($614-646/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,750-4,100/mt ($598-654/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" grade B seamless pipes according to ASTM A106/API 5L are on average at $650-680/mt FOB.
$1 = RMB 6.04