China's seamless pipe producers have continued to cut prices amid the slow rebound of demand both at home and abroad. In particular, domestic seamless pipe prices of producers in China have decreased by a maximum of RMB 50/mt ($5/mt) over the past two weeks due to the ongoing slow pace of recovery in consuming industries. Meanwhile, Chinese seamless pipe producers' export quotations have declined by $10/mt over the same period due to lack of orders and falling domestic prices. Export offers for casing have not changed over the period under review.
Market insiders believe that Chinese seamless pipe prices may find it difficult to register significant upward movement in the future in the light of high output levels, the weak recovery of the Chinese economy, and sluggish demand in what is traditionally the peak consumption season and declines in liquidity. Furthermore, a vigorous recovery of demand appears unlikely in the short term.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-5,950/mt ($929-953/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 4,800-5,250/mt ($769-841/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 ($689-713/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 $780-830/mt FOB.
Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks can be heard at around $680-720/mt FOB.
SteelOrbis has also heard that offers of Chinese 5 1/2"-9 5/8" casing pipes of J55 made to API 5CT, LTC are at $900-950/mt FOB.