Comparing with levels at the end of April, domestic quotations of welded pipes from commercial and quality manufacturers in Saudi Arabia have increased by $30-60/mt, while export prices of welded pipes have risen by a maximum of $50/mt. Welded pipe producers have lifted their prices in order to compensate for the contentious increment in HRC prices. However, over the past two weeks welded pipe prices in the Saudi market have not changed a lot since the prices of HRC materials from Saudi integrated steel producer Hadeed have remained stable.
Current offers from Saudi Arabia's commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are at $950-1,000/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 $960-1,050/mt ex-works.
Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $1,000-1,100/mt FOB.
Welded pipe producers in Saudi Arabia think that prices will drop by next quarter since there is not much demand and customers are waiting to observe the trends in the market as scrap and metal prices have dropped. A slowdown in demand is expected until September-October because of the summer vacation period and the holy month of Ramadan in August. Nevertheless, Saudi Steel Pipe Company has signed eight agreements to develop an oil and gas line pipe plant for its affiliate Global Pipes Company located in Jubail Industrial City.