The prices for welded steel pipes in the United Arab Emirates (UAE) market are falling due to low demand and slow construction activity. The current situation becomes more complicated because of higher import quotations for flats in the first half of July. This price increase was mainly due to the rush to replenish stocks before Ramadan starts. However, real consumption of flats in the UAE remains weak, both due to seasonal factors and the general economic downturn. Welded pipe manufacturers have reduced their strip purchases as they have difficulties with sales. Prices for locally produced welded pipes have declined by $10-30/mt over the past month. Import offers of Chinese welded pipes have decreased by $30/mt. At the same time, quotations of Indian welded pipes have increased by $10-30/mt over the past month on the back of expected better demand in September. Local pipemakers in the UAE hope that some improvement will be seen after the Ramadan period at the earliest, but recovery will be slow.
Domestic prices for locally produced 1"-4" welded pipes with 2- 4 mm wall thickness grade B made to ASTM A53 or BS 1387 are at about $710-740/mt ex-works, while ½"-¾" pipe sizes with 1.8-2.0 mm wall thickness are at $740-760/mt ex-works. Current domestic prices of 1"-4" galvanized ERW pipes made to BS 1387 are in the range of $900-920/mt ex-works. Prices are given on actual weight basis.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the UAE market at $760-800/mt C&F, compared to $790-830/mt C&F one month ago.
Indian suppliers are offering ERW pipes 1"- 6" as per BS 1387 (light series) or API 5L at $780-830/mt C&F, compared to $750-820/mt one month ago.