Seamless pipe prices have continued to fall in China under pressure from slack demand and softer raw material costs. Domestic seamless pipe prices of producers in China have decreased by a maximum of RMB 150/mt ($20/mt) over the past two weeks due to slow business activity in the domestic market and lower feedstock prices. Meanwhile, Chinese seamless pipe producers' export quotations have declined by $60/mt over the same period due to weaker foreign demand.
Market participants are cautious about the outlook for the coming period and think it will be hard for Chinese suppliers to raise their seamless pipe prices in the coming short-term period taking into account the current market situation. Furthermore, high levels of both inventory and output remain hurdles for a recovery in the market.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,000/mt ($933-965/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 4,700-5,100/mt ($756-821/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,300-4,450/mt ($692-716/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-14" grade B seamless pipes according to ASTM A106/API 5L are on average at $720-770/mt FOB.
SteelOrbis has also heard that offers of 4 1/2"-9 5/8" casing pipes of J55 made to API 5CT, plain end, R3 are at $800-810/mt FOB from Hebei Province, while quotations of 9 5/8"- 13 3/8" casing pipes of J55, N80 made to API 5CT, LTC/BTC from Jiangsu Province are at around $1,015-1,080/mt FOB.