Chinese seamless pipe suppliers are facing low demand in all destinations as well as domestic overcapacity. Domestic seamless pipe prices of producers in China have decreased by a maximum of RMB 100/mt ($14-15/mt) over the past two weeks following softening raw material prices and in line with sluggish business activity in the domestic market. Meanwhile, Chinese seamless pipe producers' export quotations have declined by $10-20/mt over the same period amid bleak demand from most outlets. Market players believe it will be difficult to reverse the soft trend in the Chinese seamless pipe market given the persistently rising domestic seamless pipe output, sluggish demand in overseas markets, and the approach of the rainy season in Asia.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,000/mt ($935-968/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 4,600-5,000/mt ($742-806/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,200-4,400/mt ($677-710/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-14" grade B seamless pipes according to ASTM A106/API 5L are on average at $700-760/mt FOB.
Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks can be heard at around $670-720/mt FOB.
SteelOrbis has heard that offers of 4 1/2"- 13 3/8" casing pipes of J55, N80 made to API 5CT are at the level of $800-950/mt FOB.