Prices for Chinese seamless pipes have moved upwards pushed by higher steel costs and recovering demand. In the past two weeks, domestic prices have climbed up by RMB 200-500/mt ($30-70/mt) while export prices have risen by $20/mt. In the traditional busy spring season, steel prices are expected to continue their upsurge despite high stock levels. Market insiders believe that, once prices continue to maintain their upward course, end-users will become more active in buying, in turn resulting in reduced inventory. Meanwhile, exports of seamless pipes from China have continued to decline due to a number of trade barriers in the export markets. China's export volume for seamless pipes in January this year reached 260,824 mt, 23 percent lower than in January 2009 and down 9.4 percent than in December 2009.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at around RMB 5,300-5,500/mt ($780-810/mt) ex-works. These prices for the local market include 17 percent VAT and are on actual weight basis. Domestic quotations of tubing pipes of 2"-4" size, grade J55 as per API 5CT, plain-ended, are at about RMB 6,000-6,300/mt ($880-925/mt) ex-works. Chinese domestic prices for casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 5,800-6,000/mt ($850-880/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 1"-4" grade B material according to ASTM A106/API 5L are on average at $775-830/mt FOB, while 20"-24" pipes are at $820-850/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $920-950/mt FOB, while quotations for 2 ½"-4" casing are at $900-920/mt FOB. SteelOrbis has learned of offers of Chinese 13 3/8" casing pipes N80 as per API 5CT, BTC, at $1,100/mt FOB and 20" casing pipes K55 as per API 5CT, BTC, at $1,850/mt FOB.