Pushed by higher raw material prices, Chinese seamless pipe quotations have continued to rise. Over the past two weeks, domestic quotations of seamless pipes have increased by a maximum of RMB 200/mt ($20/mt), while export prices have gone up by $40-80/mt. Meanwhile, international purchasing interest in seamless pipes from China remains muted. According to market players, the domestic seamless pipe market has indicated an upward trend since the middle and the end of July, continuing to climb up after entering August. In the domestic market some new projects which require a large quantity of seamless steel pipes are getting underway one after the other. On the other hand, some traders are worried about the future market due to the rapid growth of market prices, and so plan to reduce their purchases. Meanwhile, round billet quotations continue to rise on the back of higher iron ore and ferrous scrap prices, leading to a rise in production costs and thus pushing many pipe mills to lift their ex-works prices. Seamless pipe producers in Chine hope to maintain the upward price trend during September and in the early fourth quarter in line with raw material prices.
Chinese domestic prices of seamless pipes, 2 ½"-6" grade B according to ASTM A106 or GB/8163, are varying at around RMB 5,300-6,200/mt ($780-910/mt) ex-works, including 17 percent VAT.
In July this year China produced 2.2 million mt of seamless pipes, 21.5 percent higher than in July 2009. Total production for the first seven months of this year was 14.167 million mt, up 16.9 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 $860-930/mt FOB, while 16"-20" pipes are at $920-1,090/mt FOB.
At the same time, some producers in Shandong Province are offering 1" seamless pipes of grade B according to ASTM A106/A53/API 5L at $930/mt FOB, while they are offering ½"-3/4" pipes at $1,000-1,080/mt FOB.
Export offers of galvanized seamless pipes, 2"-8" grade B according to ASTM A106/A53 from Henan Province are being given at $1,020-1,060/mt FOB.
Export quotations for 2 3/8"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,050-1,150/mt FOB, while quotations for 4 ½"-7" casing are at $975-1,060/mt FOB.