In the Saudi Arabian market welded pipe offers have continued to increase. Domestic quotations of welded pipes from commercial and quality manufacturers have increased by $50/mt over the past month. Export prices of welded pipes have risen by a maximum of $50/mt over the period under review. Although demand is stable in the Saudi market, the increases in welded pipe prices have been driven mainly by the cost factor as well as by surging import offers. Steel traders continue to make purchases and replenish their stocks in expectation of further price increases. Welded pipe producers in Saudi Arabia are not sure where the current increases in HRC prices will lead to and whether stability in prices will be achieved by the end of this year. In any case, more expensive raw materials will push quotations of welded pipes to higher levels.
Current offers from Saudi Arabia's commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are at $920-960/mt ex-works (here and below on an actual weight basis). Quality Saudi Arabian manufacturers approved by state-owned national oil company Saudi Aramco are offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $900-1,000/mt ex-works.
Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $950-1,050/mt FOB.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the Saudi market at $800-850/mt C&F, compared to $770-840/mt C&F one month ago. Indian suppliers are offering ERW pipes up to 6" as per BS 1387 (light series) at the level of $950-1,000/mt C&F Saudi Arabia against $780-830/mt C&F Saudi Arabia one month ago.
Due to the rising movements in welded pipe prices, market players have been obliged to review their project costs; nevertheless, a large number of projects continue to proceed. In particular, state oil company Saudi Aramco received bids recently for the main construction contract for the King Abdulaziz Centre for Knowledge and Culture (estimated project value of SAR 1.5 billion) in Saudi Arabia's Eastern Province. The construction work includes five interconnected buildings, the tallest of which will be 15 storeys high. The complex will include exhibition halls, a museum, a mosque, a library, a cinema and an auditorium and theatre for up to 1,000 visitors. The project is scheduled for completion in 2013 and has been designed to resemble five pebbles in the desert.