Conditions in the Chinese seamless pipe market are getting worse amid slack foreign and domestic demand as well as falling quotations of domestic feedstock and import iron ore. Domestic prices for seamless pipes have declined by around RMB 100-200/mt ($15-31/mt) over the past two weeks. At the same time, export offers of Chinese seamless pipes have decreased by $10-20/mt. Meanwhile, local and overseas buyers are mostly refraining from purchases of Chinese material due to concerns that prices may go down further amid the decreasing trend in the global market and unstable positions of iron ore suppliers. The situation is also aggravated by the coming rainy season in Asia and the approach of Ramadan in Middle Eastern countries.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,000/mt ($940-972/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 4,500-4,800/mt ($729-778/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 3,950-4,250/mt ($640-689/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless hot-rolled pipes according to ASTM A106/API 5L are on average at $680-730/mt FOB, while 14"-20" pipes are quoted at around $700-750/mt FOB.
Export quotations of Chinese 1"-1 1/2" seamless cold-drawn pipes of grade B as per ASTM A106/API 5L can be heard at around $800-860/mt FOB, while 2"-3" cold-drawn pipes can be offered at about $800-880/mt FOB.
SteelOrbis has heard that offers of 4 1/2"-13 3/8" casing pipes of J55 made to API 5CT are at levels of $900-950/mt FOB.