The Chinese seamless pipe market has maintained a soft trend over the past two weeks, while transaction activity has not shown any improvement. Domestic seamless pipe prices of producers in China have decreased by RMB 50-100/mt ($9-17/mt) over the past two weeks following a softening in raw material costs and in line with weaker market sentiment. Chinese seamless pipe producers have cut their export offers by a maximum of $10/mt over the past two weeks on the back of bleak demand from most outlets. It is thought that it will be hard to see any improvements in the Chinese seamless pipe market in the coming period due to sluggish overseas demand, slack trading activity in the domestic market and fragile market sentiment.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,200/mt ($966-998/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 5,000-5,150/mt ($805-829/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,900-4,100/mt ($628-644/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $720-760/mt FOB, while offers from big producers have remained at levels of $840-860/mt FOB.
Export prices for 7"-9 5/8" casing pipes of J55 strength grade, as per API 5CT, plain ends, are at about $850-900/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $900-950/mt FOB.
$1 = RMB 6.21