Demand for Chinese seamless pipes from both local and foreign buyers have continued to weaken amid the off-peak season and global economic uncertainty. However, the rate of price decrease has slowed down in the Chinese seamless pipe market on back of relatively stable quotations of billets. Over the past two weeks, Chinese suppliers have decreased their domestic quotations by RMB 50-100/mt ($5-15/mt), while their export offers have gone down by $10-20/mt. Most market players think seamless pipe offers may remain stable in the coming period, but maintain a downward trend in the longer term as demand is unlikely to witness any improvement and may even shrink further in Q1 next year amid a slowdown in economic growth along with decreasing demand in the steel markets.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,300-5,400/mt ($835-850/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,200/mt ($945-975/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $900-950/mt FOB.
Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks currently vary in the range of $770-800/mt FOB.
Export quotations for 4 ½"-9 5/8" casing, J55 as per API 5CT, plain ends, are at $850-940/mt FOB, while 13 3/8" casing, BTC, are at about $1,030-1,090/mt FOB.