Demand for seamless pipes is improving gradually in Saudi Arabia due to the start of new construction projects in the country. However, the lack of workforce continues to hamper construction activity. Most foreign seamless
pipe suppliers have started to raise their offers for Saudi buyers amid higher raw material prices and the positive market outlook. Over the past month, offers of Chinese seamless pipes have gone up by a maximum of $10/mt, while Ukrainian suppliers have lifted their seamless
pipe prices for Saudi Arabia by a maximum of $5/mt. Seamless
pipe prices from South Africa have increased by around $20/mt, while offers of Japanese material have moved up by $20-30/mt over the past month. The situation in the Saudi seamless
pipe market will likely continue to recover due to increasing activity in the construction industry and continuously rising steel demand. It is estimated that around $400 billion will be invested in areas of infrastructure in Saudi Arabia by 2015.
Most offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $800-840/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-6" grade B made to ASTM A106/API 5L to Saudi Arabia are at $1,020-1,040/mt CFR, while 8"-10" pipes are offered at around $1,035-1,060/mt CFR.
South African seamless pipes (ArcelorMittal), 2"-6" grade B made to ASTM A106, are quoted at around $1,000-1,030/mt CFR Saudi Arabia.
Quotations from Japan (NSSMC) for seamless pipes of 2"-6" grade B made to ASTM A106/API 5L are at about $1,450-1,500/mt CFR Saudi Arabia.