Despite the recent decline in steel prices in China, most local seamless pipe mills and round billet makers are keeping their ex-works and FOB prices unchanged and prefer to maintain a wait-and-see approach in the uncertain market conditions. Export sales are still reported to be sluggish, as leading export markets are effectively out of bounds for Chinese mills due to antidumping duties. Market sources say that domestic demand for seamless pipes in China is expected to grow strongly in the coming period, though there may be a slowdown in demand growth in the second half of the year. Market players think that seamless pipe quotations will likely continue to rise after the May Day Holidays, but not as fast as before.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are varying at around RMB 6,100-6,500/mt ($890-950/mt) ex-works, including 17 percent VAT.
Сurrent export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $870-920/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,150-1,200/mt FOB, while quotations for 6"-8" casing are at $1,000-0-1,050/mt FOB.