Trading activity in the Chinese seamless pipe market has remained sluggish over the past two weeks as participants adopt a wait-and-see stance. Domestic prices of seamless pipes in China have remained unchanged over the period under review. The persistent market weakness can be attributed to insufficient downstream demand and tight liquidity. China's seamless pipe export prices have also remained stable over the past two weeks amid bearish sentiment and slack demand ahead of the winter. Market participants mostly think the market will remain sluggish and are downbeat on the future prospects for the market.
Domestic prices of 4"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 3,900-4,350/mt ($637-711/mt) ex-works, including 17 percent VAT.
Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,350-3,650/mt ($547-596/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,250-3,550/mt ($531-580/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" Sch40 grade B seamless pipes according to ASTM A106/API 5L are on average at $560-580/mt FOB on theoretical weight basis.
$1 = RMB 6.12