The seamless pipe market in China has continued to decline amid weakness in buying activity. Over the past three weeks, Chinese suppliers have decreased their domestic quotations by RMB 100-200/mt ($20-30/mt), while export offers have gone down by $50-80/mt. Foreign markets are characterized by sluggishness and great uncertainty, which may increase the difficulties for China's exports. The domestic seamless pipe market will also remain slack given the ongoing weakness of downstream demand and the low season for steel consumption. However, market participants do not expect seamless pipe prices to drop much further due to high production costs, though market confidence remains low.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,350-5,500/mt ($840-865/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,200/mt ($955-975/mt) ex-works.
According to the China Iron and Steel Association (CISA), in October this year China produced 2.284 million mt of seamless pipes, more than September's 2.232 million mt and marking an increase of 11.7 percent year on year. Total production for the first 10 months of this year was 21.867 million mt, up 9.8 percent over the same period last year.
Current export offers of commercial quality seamless pipes from Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106 are on average at $780-820/mt FOB, while quotations of 1"-1 1/2" pipes are at $820-865/mt FOB. Export quotations of 2"-6" seamless pipes of grade B as per ASTM A106/ASTM A53/API 5L from big quality producers are at $900-1,000/mt FOB.
Chinese seamless boiler tubes, DIN 2448/17175 St35.8, are quoted for foreign consumers at around $1,050-1,100/mt FOB for 21.3-26.9 mm outside diameter and at about $1,000-1,040/mt FOB for 33.7-168.3 mm outside diameter.
Export quotations of Chinese seamless pipes of 51-168.3 mm diameter of steel grade 37 as per DIN 2448/1629, currently vary in the range of $1,000-1,080/mt FOB, while seamless pipes of 219.1-273 mm are at around $930-980/mt FOB. Heavy wall seamless pipes of 457.2-711.2 mm diameter with 30-100 mm wall thickness of steel grade 37 as per DIN 2448/1629 are offered at an average of $930-960/mt FOB.
Export quotations for 4 ½"-13 3/8" casing, J55 as per API 5CT, plain ends, are at $1,050-1,100/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,100-1,150/mt FOB.