In the past month the welded pipe market in Saudi Arabia has continued its upward movement, driven by the increased prices for flat products and by improving market demand. Domestic quotations of welded pipes from commercial manufacturers have increased by $20-30/mt over the past month while quality manufacturers have raised their offers for the domestic market by a maximum of $50/mt. Export prices of welded pipes have risen by $20-50/mt over the period under review.
Current offers from Saudi Arabia's commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are at $870-910/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 $900-950/mt ex-works. SteelOrbis has learned of offers from local quality manufacturers of 30"-34" SSAW pipes grade X60 as per API 5L at about $1,200-1,250/mt ex-works.
Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $950-1,000/mt FOB. Commercial manufacturers are offering 2"-10" welded pipes grade A, B as per ASTM A53/API 5L to the external market at around $850-880/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 $770-840/mt C&F, compared to $700-760/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 $780-830/mt C&F Saudi Arabia.
Demand for steel, including steel pipes, in top oil exporter Saudi Arabia is expected to rise this year by eight percent, with consumption nearing 6.4 million metric tons. Oil demand is picking up as the global recovery strengthens. Thus, market players in Saudi Arabia expect growing demand for quality welded pipes due to the implementation of new projects.
The construction sector in Saudi Arabia has also been picking up, expanding by 3.9 percent in 2009, with real estate growing by 1.8 percent. Sustained government expenditure and private sector investments continue to drive new real estate and construction projects across the country, which will push up the demand for commercial quality welded pipes. The Kingdom is planning to spend SAR 46 billion on various water, agriculture and infrastructure projects, representing an increase of 30 percent over the previous year. The new budget covers construction of water sources, dams and wells, water and sewage networks and water desalination plants.