Demand for welded pipes in Saudi Arabia remains firm thanks to a number of government- and private sector-funded infrastructure and construction projects. Over the past month, Saudi pipe producers have managed to keep their domestic and export prices unchanged, despite lower flat steel quotations.
Market insiders believe welded pipe demand from consuming industries in Saudi Arabia may decline somewhat in the coming period amid slower implementation of some construction projects in summer, the approach of Ramadan and the downward trend in the global market.
Quality Saudi Arabian manufacturers, approved by Saudi Aramco, are offering 8"-10" welded steel pipes grade B as per API 5L with plain ends at around $950-970/mt ex-works on theoretical weight basis, while 5"-6" pipes are at the level of $990-1,000/mt ex-works.
Current offers from Saudi Arabian commercial producers for 1"-2" ERW pipes grade A, B as per ASTM A53 are being given to the domestic market at $900-920/mt delivered on theoretical weight basis, while offers of 3"-4" ERW pipes are at around $875-885/mt delivered.
Export quotations from Saudi Arabia of 8"-10" welded steel pipes grade B made to API 5L from quality producers are at $1,000-1,020/mt FOB, while export offers of 1"-4" ERW pipes from Saudi commercial producers are at $900-940/mt FOB.
Import offers of Chinese welded pipes of 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at around $700-750/mt CFR, compared to $720-770/mt CFR at the end of April.