Demand starts to recover in Chinese seamless pipe market

Wednesday, 28 March 2012 14:41:17 (GMT+3)   |  
       

Most Chinese seamless pipe producers continue to maintain a wait-and-see stance and are still keeping their prices unchanged. Meanwhile, a slight upward trend has been seen in some regions. Over the past two weeks, domestic prices of Chinese seamless pipes have increased by a maximum of RMB 50/mt ($10/mt), while export quotations have remained unchanged. Although demand has started to recover in the domestic market which is moving towards its peak sales season, a strong uptick in prices has not been seen yet. Market participants expect a gradual recovery of demand from downstream sectors in China, while firm demand from foreign buyers will support a further rise in seamless pipe quotations. However, seamless pipe prices are unlikely to see a major increase due to strong supply pressure and the uncertainty in the global economy.

Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,200-5,350/mt ($820-845/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,200-6,300/mt ($980-995/mt) ex-works.

Current export offers of seamless pipes from most Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $850-930/mt FOB.

Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,020-1,050/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,050-1,100/mt FOB.


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